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.