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Chase Facing Class Action Re: grace period interest calculations

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Chase Facing Class Action Re: grace period interest calculations

Interesting compliant filed in the DC circuit regarding Chase and grace periods. Per the summary:

 

On June 3, a consumer filed a class action complaint against a national bank alleging that the bank charges interest on credit card accounts even when consumers’ balances are paid in full by the billing cycle due date, in breach of the bank’s cardholder agreement. The complaint alleges that the cardholder agreement and monthly billing statements disclose to consumers that interest will not be charged on new purchases if those new purchases are paid off by the billing cycle’s due date, but that in practice the grace period is eliminated for new purchases “[i]f a consumer leaves even $1 on her account balance after a billing period due date.” The complaint alleges that the bank’s practice of only providing a grace period on new purchases for consumers “who have paid off their balances in full for two prior months” directly contradicts the cardholder agreement and consumer disclosures. In addition to breach of contract, the consumer alleges a violation of Delaware’s Consumer Fraud Act and breach of the covenant of good faith and fair dealing. The consumer is seeking certification of a class of similarly situated consumers; damages and restitution; and injunctive relief.

 

Complaint can be found here: Chase Lawsuit

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Established Contributor

Re: Chase Facing Class Action Re: grace period interest calculations

I realized the appropriate place for this was "Credit in the News." Please send to there when you see this, mods. 

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Established Contributor

Re: Chase Facing Class Action Re: grace period interest calculations

While the suit is being brought privately, it will definitely be interesting to see if the enforcement arms of any regulatory agencies get involved. This feels a lot like something the FTC would be interested in, given that a majority of their enforcement actions in the financial services space involve deceptive or inaccurate disclosures. The FTC seems to be on a very big kick of "do what you say" when it comes to disclosures and other business practices. 

 

Should be an interesting area to monitor going forward. Will keep you posted if I see anything else. 

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2019 Immediate Goals:
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8/19: App for Chase Ink Cash (APPROVED!)
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2020 Goals:
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Regular Contributor

Re: Chase Facing Class Action Re: grace period interest calculations

Interesting... I'm sure a lot more banks are guilty of similar practices. 

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Valued Contributor

Re: Chase Facing Class Action Re: grace period interest calculations

Interesting, Chase definitely doesn't want the type of reputation Wells Fargo has gotten.

 

I honestly don't know how anyone would even catch this, I don't scrutinize my bills that well. PIF measn no blance left owed. Although when you let it float over to the next statement before payiong it off, those pennies add up. 

 

You would think this is all automatic though, so how does this type of thing even happen? A glitch perhaps?






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Established Contributor

Re: Chase Facing Class Action Re: grace period interest calculations

Anyone else notice this is happening the same time they're trying to force arbitration on their customers. Wonder what else they have going on.
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Established Contributor

Re: Chase Facing Class Action Re: grace period interest calculations


@OpenG wrote:
Anyone else notice this is happening the same time they're trying to force arbitration on their customers. Wonder what else they have going on.

Honestly, the arbitration thing is likely related but unrelated. Amex and other companies have already had such provisions. Chase is just behind the times. 

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2019 Immediate Goals:
7/19: 3x CLI for Hilton Aspire (SUCCESS!)
8/19: App for Chase Ink Cash (APPROVED!)
12/19: One bureau FICO 8 at 750 (DONE! EX FICO 8 at 750!)


2020 Goals:
$100K total CL (through organic/soft pull growth; presently 80.4K)
Garden Forever
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Frequent Contributor

Re: Chase Facing Class Action Re: grace period interest calculations


@OpenG wrote:
Anyone else notice this is happening the same time they're trying to force arbitration on their customers. Wonder what else they have going on.

Have you opted out of the arbitration by sending in the signed letter? 

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Established Contributor

Re: Chase Facing Class Action Re: grace period interest calculations


@ScoreSizzle wrote:

@OpenG wrote:
Anyone else notice this is happening the same time they're trying to force arbitration on their customers. Wonder what else they have going on.

Have you opted out of the arbitration by sending in the signed letter? 


I'm not a Chase customer. Definitely would consider it if I was. I wasn't necessary implying some conspiracy, just thought it to be somewhat ironic. Really thought no bank or financial institution should be given much trust IMO.  We have lots of historical reasons to be sceptical. After all we are just acct numbers, a commodity, and are treated that way.

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