JPMorgan Chase Misleading Credit Card Fee Statement TILA Class Action

The Truth in Lending Act (TILA) aims to offer consumers proper disclosure of the terms of credit. The complaint for this class action alleges that JPMorgan Chase Bank, NA made disclosures “with inaccuracies or omissions” about its annual account or membership fees for its credit card accounts, thus violating the requirements of TILA.

The class for this action is all persons who, between December 2, 2019 and December 2, 2020, were given an account renewal disclosure by Chase that did not show and individually itemize the annual membership fee or maintenance fee for the continued use of credit to the primary account holder and the membership or maintenance fee for other users.

TILA’s disclosures of credit terms have three purposes, the complaint says:

  • To let consumers compare the credit terms of the various options available.
  • To enabled consumers to use credit in an informed manner.
  • To protect consumers against billing practices that are inaccurate or unfair.

The complaint alleges that JPMorgan Chase does not put the correct credit card account’s annual fee or charge for renewal on its credit card statements. The complaint contends that this had the opposite effect of those intended by TILA.

Here’s what the complaint claims happened.

The plaintiff in this case, Stuart Weichsel, had a credit card issued by JPMorgan Chase that he used for household purposes. His December 2019 billing statement contained a Renewal Notice which stated that would owe an annual membership fee of $525.

He looked over the Renewal Notice and could not find any indication that the fee might be anything less than $525. However, the complaint alleges, “The then-prevailing terms in Chase’s credit card agreement with its customers, including Weichsel, provided that the annual membership fee for this credit card product was $450.00.”

According to the complaint, Weichsel believed that he had to pay the entirety of the $525 billed to him to maintain the account. He paid it February 2020. In fact, the complaint says, the correct amount was $450.

Why was he billed the higher fee? The complaint claims that the $525 amount included the $450 basic fee plus another $75 for a second card for another user. However, the complaint contends that this was not indicated on the statement. Had Weichsel realized that an additional amount had been added for a second user, the complaint alleges, he would not have paid it.

The sole count in this case is violation of the Truth in Lending Act.

Article Type: Lawsuit
Topic: Loans
No case events.
Tags: Credit Cards, Debit or Credit Card Fees, TILA, Your Bank