Credit Card News
Advertising Disclosure
Credit-Land.com is an independent, advertising-supported web site. Credit-Land.com receives compensation from many credit card issuers whose offers appear on our site. Compensation from our advertising partners impacts how and where their products appear on our site, including, for example, the order in which they may appear within review lists. Credit-Land.com has not reviewed all available credit card offers in the marketplace.
Credit Card Applications » News » Other » Card holder files lawsuit against chase bank

Card holder files lawsuit against chase bank

By
Add to Favorites:
Card holder files lawsuit against chase bank

Credit card holder James McCoy has filed a class action lawsuit in the Supreme Court against Chase Bank. He said that he wants a particular amount of his credit card interest rate taken off his billing statement due to Chase Bank’s inaction to notify him of such an increase prior to its application.


New credit card rules and regulations stipulate that credit card issuers must notify their card holders of interest rate increases prior to the date when such increase or increases will be effective. The law reserves 45 days for credit card companies to notify their credit card holders before they can even apply the rate increases in their computations of the amount a credit card holder must pay.


McCoy complains that the interest rate increase took effect even before the new Credit Card Act had been implemented. He said further that Chase Bank had previously frozen his account before increasing his Chase Slate credit card interest rate. At the immediately succeeding billing and payment cycle, McCoy said that Chase Bank did not include any notice or indication whatsoever that his interest rate was increased. Additionally, he says that the rate increase applied to his previous credit card statements increasing actual amounts that he needed to pay. It was only after the rate had been increased that McCoy says he became aware of such an increase.


Chase Bank says that they did not need to notify McCoy due to the contract stipulating penalty rates the moment credit card applications are finally approved and opened, with proper observance of the payment methods. The bank says that McCoy already knows such information and he was constantly reminded even during the process of his credit card application.


In general, banks are required to disclose information on penalty rate and rate increases under the Truth in Lending Act Regulation stating that it is always imperative for lenders to disclose rate increases prior to their future application. Banks also need to inform their card holders of the specific details on how they are going to notify the latter about interest rate increases. McCoy says that regardless of Chase Bank’s statement that he was aware of the possible increases the moment, he signed the contract, he was still entitled to prior notice when pending interest rate increases are to take effect.


McCoy’s side argues that Truth in Leading Act Regulation Z intends to reinforce notice every time increases are to take effect and not only during the card holder’s signing of contract.

Add to Favorites:

Related News:

Best Buy Gets Chase Pay

By Dar Dowling, Posted: September 30, 2016

Best Buy carries everything from smartphones and TVs to computers and cameras – and now people who shop with them will be able to use Chase Pay when shopping online. Continue reading
Financial Optimism is Up, But So is Income Stress

By Dar Dowling, Posted: September 29, 2016

Are you feeling more hopeful, yet are still a bit worried about whether or not you're making enough money? Continue reading
MasterCard Send Makes a Splash

By Dar Dowling, Posted: September 28, 2016

MasterCard and Stripe have teamed up so that U.S. sellers using Stripe marketplaces, like Postmates, Instacart and iCracked, can opt to make instant payouts via the Stripe interface, using MasterCard Send. Continue reading
Get the latest news, articles and expert advice delivered to your inbox. It's FREE.
Get 0% Intro APR on Balance Transfers and Purchases for 21 months. After that, the APR will be 12.24%-22.24% based upon your creditworthiness.
For Excellent/Good Credit
1% cash back on select purchases, terms apply
For Fair Credit
Guaranteed $500 Unsecured Credit Limit
For Bad Credit