Class Suit Against JPMorgan on Overcharging Crypto Buyers
It has been alleged JPMorgan Chase have violated the Truth in Lending Act by not disclosing amped-up fees to customers purchasing cryptocurrencies. Specifically, the lawsuit alleges that this January, JPMorgan Chase began treating the purchase of cryptocurrencies as "cash advancements", which typically charge about 2.5% of the amount of the cash advance, or in this case, cryptocurrency purchase. The major issue with this policy is that this policy was enacted without notifying cardmembers, and thus would be in violation of the Truth in Lending Act.
The plaintiff in this case is Brady Tucker, who alleges that Chase Bank charged him (incorrectly) $143.30 in fees and $20.61 in interest from his cryptocurrency purchase using his Chase credit card this January and February. This occurred just prior to Chase, and other large credit institutions, from ending all crypto purchases using credit. These fees were not charged to those using their debit cards, just those using Chase's actual credit. When Tucker called Chase's customer service to dispute the charges, his requests were refused. Tucker's complaint states:
Tucker and his lawyers are seeking a reimbursement of the fees incurred, as well as an aggregated amount of $1 million paid out to those class-action status plaintiffs, for statutory damages. Currently the size of the class of affected Chase cardholders has not yet been determined, but it is estimated that it may be hundreds or thousands of other card members. Tucker's lawyers propose: