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 » Promotions » JPMorgan Paying Back Those $38 Cups Of Coffee

JPMorgan Paying Back Those $38 Cups Of Coffee

By
Add to Favorites:
JPMorgan Paying Back Those $38 Cups Of Coffee

Judicial papers revealed in a Miami federal court after long running debates that J.P. Morgan Chase should be held accountable. J.P. Morgan Chase isn`t the first bank to pay out. Last year Bank of America made paid $410 million payment to settle their similar lawsuit. Wells Fargo will have to pay approximately $200 million.

In some situations customers use their debit cards without having enough money on their accounts, which gives a bank an excuse to overcharge those customers a $35 fee for each purchase. In many cases these purchases cost less than the $35 overdraft fee. That`s where you get a symbolized $38 cup of coffee – when a consumer`s debit card allows them to purchase a $3 cup of coffee when the funds are not available, and they are subsequently charged a large overdraft fee.

The biggest complaint was that banks no longer analyze purchases from the highest to the lowest. The majority of banks, today, like J.P. Morgan, refused to analyze the purchases and just charged fees in order for you make those purchases.

The point of the regulation was to let customers decide whether they would give consent for the bank to charge the fees or allow the bank to reject the purchase.

In the spring of 2010, J.P. Morgan changed their overdraft policies and inducted an “opt-in” system. With this system, overdrafts that were less/or $5 were excluded.

Last week, the bank was “pleased to have reached an agreement in principal”, as per bank`s representative.

One of the managing partners at PodhurstOrseck and co-lead counsel for the plaintiffs – Aaron Podhurt, stated that the settlement with J.P. Morgan is “a fair, adequate and reasonable settlement for our class members, and we expect it will eventually be approved.”

Bank of America is more insecure about these regulations than other banks, mainly because its accounts weren`t a subject to judicial regulations, which other banks have typed in a small print. These arbitrations are likely to be a stumbling block for Bank of America.

Some of the banks affected by the lawsuit include Wells Fargo, U.S. Bancorp, Citigroup, Huntington Bancshares Inc. and SunTrust Banks Inc.

Add to Favorites:

Related News:

Finances and Marriage – Its an Issue

By Dar Dowling, Posted: February 22, 2017

Finances can play a very real role in divorce, but it can also have a profound effect on a couple’s financial health after divorce papers have been signed and put away, according to a new national study by Experian. Continue reading
Small and Medium Businesses Are Feeling Hopeful and Confident

By Dar Dowling, Posted: February 21, 2017

If you have felt a sense of hopefulness when visiting small and medium-sized businesses, you’re in sync with the trending vibe, according to the inaugural American Express Global SME Pulse. The study found that these businesses are feeling ... Continue reading
New Visa Cards From Cathay Pacific

By Dar Dowling, Posted: February 20, 2017

Travelers have new rewards earning credit cards to choose from with the rollout of Cathay Pacific Visa Signature card. Continue reading
Get the latest news, articles and expert advice delivered to your inbox. It's FREE.
Unlimited 1.5x rewards on every purchase, every day. For every $1 you spend, you earn 1.5x Miles.
For Excellent, Good Credit
Earn cash back twice on every purchase with unlimited 1% cash back when you buy, plus an additional 1% as you pay for those purchases.
For Excellent/Good Credit
Get a dollar-for-dollar match of all the cash back you’ve earned at the end of your first year, automatically.
For Excellent, Good Credit