Account Service Charge of $10 a month.
San Francisco, CA (PRWEB) March 7, 2009
Green Welling LLP filed two class action lawsuits regarding promotional offers from Chase Bank USA, N.A. ("Chase") that promised a low interest rate for the life of the loan or until paid off. The parent company of Chase is J.P. Morgan Chase & Co. ("J.P. Morgan - NYSE: JPM). Chase credit card customers allege in the complaints that they were offered balance transfer loans or loans in the form of blank checks that were connected to but with different terms than the credit cards. The Plaintiffs also claim that the promotional rate loans offered by Chase had terms that were at low interest rates usually with APR's or interest rates set at 2.99% or 3.99% "for the life of the loan." Chase used the promise of these low fixed rates for the life of the loan to induce consumers to transfer their balances from other credit card accounts to a Chase account, according to one of the Plaintiffs' attorneys, Robert Green. Most people paid a substantial balance transfer fee to Chase to lock in the promotional rates for as long as there was a balance remaining on the transferred amounts, he said.
In November 2008, Chase sent its customers a notice stating that the minimum monthly payments would go up by 150%, from 2% of the balance to 5% of the balance, according to the document. The notice of change in terms sent by Chase also added a new finance charge misleadingly described as an "Account Service Charge of $10 a month." This new $120 annual account finance charge effectively increases the customers' interest rates, Mr. Green said.
The cases are filed in the federal courts in the District of Oregon and the Central District of California. The actions seek to return the accounts of card holders to their original promised terms and to obtain damages for additional amounts that card holders were required to pay in violation of the promises made by Chase. The lawsuits also seek to address the unfair provisions placed in the cardmember agreements by Chase that purport to require cardholders to individually arbitrate their claims and try to prevent cardholders from joining together in a class action to vindicate their legal rights.
Green Welling, a national class action law firm based in San Francisco, California, represents plaintiffs in personal finance cases, involving companies like Chase Bank, Bank Atlantic and Bank of America, as well as plaintiffs in product liability actions, securities lawsuits, derivative cases and antitrust actions. If you wish to discuss this action with us or have any questions concerning a potential class action, please contact Robert Green by email at firstname.lastname@example.org or visit our website at http://www.classcounsel.com.
Robert S. Green
Green Welling LLP
Tel. (415) 477-6700
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