U.S. commercial banking giant JP Morgan is being sued for damages of $1 million. According to Reuters, the commercial lender is facing a class action suit after it is alleged that the bank is guilty of adding layers of fees unannounced with interest added too. The class action follows the Bank stopping customers from buying cryptocurrency using credit and debit cards and started to treat any crypto bought as cash advances.This applies to crypto debit cards.
JP Morgan Chief Executive Officer Jamie Dimon notoriously labelled bitcoin as a fraud, and it seems he may live to regret his words.
Brady Tucker, an Idaho resident and the plaintiff, filed the lawsuit in New York State court. Tucker claims that JP Morgan have been charging extra layers of fees and a far higher rate of interest on the cash advances compared to what is charged for purchases on the credit cards. Customers were undeniably not happy, but the bank has not given an inch.
JPMorgan is not the only U.S. based bank to ban credit cards to buy bitcoins or other altcoins. Bank of America and Citi, to name two, have also taken this road. This happened earlier this year during the cryptocurrency’s volatile pullback in value.
The Class Action Alleges Unannounced Fees by JP Morgan
Right now, the lawsuit is all about the consumer with fighting back against unknown and secret fees. The plaintiff wants his money back for being charged the additional unannounced fees. This includes more than $140 in “fees.” There are also $20-plus in interest charges that were attached to almost half a dozen credit card transactions. These fees occurred around the time Chase started the cryptocurrency ban.
According to the lawsuit, there are “hundreds” and “possibly thousands” of other Chase customers affected by this.
Tucker’s legal team are espousing U.S. Truth and Lending Act being violated. The act is in place to provide protection to consumers from “unfair credit billing and credit card practices.” The act also states that large financial institutions, like banks and credit card lenders, must clearly notify clients of any account term changes in writing.