JP Morgan Chase is facing an allegation of violating the US Truth and Lending Act on “unfair credit billing and credit card practices.” It failed to inform customers in writing about the extra charges or changes in terms.
A lawsuit has been filed against JPMorgan Chase & Co for charging higher fees on cryptocurrency purchases. This happened after stopping the customers from buying cryptocurrencies with its credit cards in January this year and started treating the purchases as cash advances.
Cash advances attract a higher fee than the credit card crypto purchases. The lawsuit says the bank charged extra fees and substantially higher interest rates on the cash advances.
The lawsuit was filed in a New York court on behalf of a proposes nationwide class.
The plaintiff is an Idaho resident by the name Brady Tucker. Thus, who Chase forced to pay $143.30 in fees and $20.61 in surprise interest charges. These charges apply for five transactions between January 27 and February 2 and the bank refused to refund after he approached them.
They insisted that he should pay instead. Thus, the bank violated the U.S. Truth in Lending Act according to the lawsuit. According to the new act, credit card issuers must notify customers in writing, of any changes in charges or terms.
However, he is now asking for $1 million in actual and statutory damages.
In the course of January and February, many banks in U.S. and U.K. including Lloyds Banking Group, Virgin Money, and Citigroup stopped credit card crypto purchases citing risks and other problems. However, customers could still buy cryptocurrencies with debit cards.