Cryptocurrency

JPMorgan Chase Settles Class-Action Suit Accusing Bank Of Overcharging Credit Fees On Digital Currency Buys

JPMorgan Chase

Plaintiffs in a case that alleged JPMorgan Chase charged clients too much for buying digital currencies with their credit cards have reportedly arrived at a settlement with the bank, CoinDesk reported.

The proceedings have been stopped, according to a March 10 court order from Judge Katherine Polk Failla.

The settlement’s details have not been made known, but it was reported that plaintiffs Ryan Hilton, Stanton Smith and Brady Tucker told New York’s U.S. Southern District Court that they came to a settlement with Chase Bank. The financial institution (FI) did not reply for requests to respond immediately, per CoinDesk.

The suit first surfaced approximately two years ago. At the time, Tucker contended that Chase had charged him over $160 in interest as well as fees for using his credit card to buy digital currencies on a regular basis.

Tucker had claimed that the FI had gone against the Truth in Lending Act for not telling clients that transactions to buy digital currency were considered to be “cash advances.” He also contended that the FI would not compensate affected clients for the fees.

The original complaint had said, per CoinDesk, “[T]he complete lack of fair notice to Chase’s cardholders caused them to unknowingly incur millions of dollars in cash advance fees and sky-high interest charges on each and every crypto purchase.”

As reported in April 2018, JPMorgan Chase was facing a suit in federal court in New York City for allegedly surprise charges when it stopped letting its clients use credit cards to purchase digital currency. A spokesperson for Chase, Mary Jane Rogers, wouldn’t comment on the suit.

However, she reportedly noted that the institution halted the processing of credit card digital currency purchases due to credit risk. Clients, however, could still use their debit cards from Chase to purchase digital currency without receiving cash advance charges, as the money would come from checking directly, per news at the time.

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