JPMorgan to pay $100M in credit card settlement
JPMorgan Chase & Co. has agreed to pay $100 million
to settle a lawsuit by customers who contend that the nation's largest bank
improperly increased minimum payments on their credit card bills.
The proposed settlement would end a 3-year-old case
against JPMorgan Chase for raising the cardholders' minimum payment to 5% of
account balances from 2% in 2008 and 2009. Cardholders say the bank did it to
make extra money on fees it charged to people who couldn't meet higher
payments.
The settlement was disclosed in a filing Monday at U.S.
District Court in San Francisco.
In the court document, JPMorgan Chase argued that
increasing the monthly payments was a reasonable and sensible response to
unprecedented economic turmoil and impending regulatory changes.
JPMorgan Chase didn't respond to request for comment
Tuesday.
A judge plans to review the settlement in August.
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