JPMorgan Hit By The Lawsuit For Charging Extra Fees To Its Clients
Apr 12, 2018 Posted / 841 Views
JPMorgan Chase and Co are in a legal dispute. Manhattan government court accused it of charging extra fees when it discontinued clients from purchasing digital money with credit cards earlier this year and started regarding the purchases as cash advances.
The documented claim said, Chase (JPM.N) charged both additional fees and significantly higher interest rates on the cash advances than on the credit cards and further declined to refund the charges when clients protested.
Mary Jane Rogers, Spokeswoman of Chase declined to say anything about the lawsuit. However, she mentioned that the bank discontinued handling credit card buys of digital currencies in light of the credit risk involved. Clients can utilize their Chase debit cards to purchase digital currency from their accounts without bringing upon cash advance charges.
Prior this year, a few banks in Britain and the United States, restricted the utilisation of credit to purchase cryptocurrencies after a sensational fall in the value of bitcoin. The banks include Lloyds Banking Group, Virgin Money and Citigroup.
Bitcoin has fallen in by more than a half part from a pinnacle of nearly $20,000 last year in the midst of worries about the regulatory crackdown.
The named offended party in the claim, an occupant of Idaho, Brady Tucker, was hit with $143.30 in extra fees and $20.61 in interest charges by Chase for five digital Currency transactions. He said, hundreds or more Chase clients were hit with the charges.
As per the claim, Tucker called Chase's client support line to question the charges however the bank declined to remove the charges.
With no warning ahead of time, Chase “stuck the plaintiff with the bill, after the fact of his transactions, and insisted that he pay it,” the claim stated.
The lawsuit has accused Chase of disregarding the U.S. Truth in Lending Act and is demanding for real damages and statutory damage of $1 million.
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