Card holder files lawsuit against chase bank - Other News

ADVERTISING DISCLOSURE

ADVERTISING DISCLOSURE:
Credit-Land.com is an independent, advertising-supported web site. Credit-Land.com receives compensation from most 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

Card holder files lawsuit against chase bank
The content is accurate at the time of publication and is subject to change.

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.

Disclaimer: This editorial content is not provided or commissioned by the credit card issuer(s). Opinions expressed here are the author's alone, not those of the credit card issuer(s), and have not been reviewed, approved or otherwise endorsed by the credit card issuer(s). Reasonable efforts are made to present accurate information, however all information is presented without warranty. Consult a card's issuing bank for the terms & conditions.
All rates and fees, and other terms and conditions of the products mentioned in this article/post are actual as of the last update date but are subject to change. See the current products' Terms & Conditions on the issuing banks' websites.
Add to Favorites:

Related News:

Mastercard Set to Buy Ethoca
Mastercard Set to Buy Ethoca

Posted: March 20, 2019

Credit Card security is something that everyone is mindful of these days, and in keeping with this theme, Mastercard is set to buy Ethoca, a company that specializes in helping both retailers and card issuers detect and resolve digital… Continue reading

American Express Set to Buy Lounge Buddy
American Express Set to Buy Lounge Buddy

Posted: March 19, 2019

American Express is well known for their Centurion Lounge network, and now they are upping the ante with the purchase of LoungeBuddy, a digital platform designed to help people find and book time in airport lounges around the world. While… Continue reading

The New Luxury Card App is Launched
The New Luxury Card App is Launched

Posted: March 18, 2019

Luxury Card has rolled out their new app, giving cardholders access to a variety of features and benefits including, finding one of a kind experiences and chat in real time with Luxury Card Concierge Specialists. These specialists can help… Continue reading

Get the latest news, articles and expert advice delivered to your inbox. It's FREE.
Earn 5% cash back at different places each quarter like gas stations, grocery stores, restaurants, Amazon.com and more up to the quarterly maximum, each time you activate.
For Excellent, Good Credit
INTRO OFFER: Discover will match ALL the Miles you've earned at the end of your first year, automatically. For example, if you earn 30,000 Miles, you get 60,000 Miles. That's $600 towards travel!
For Excellent, Good Credit
Earn unlimited 1.5% cash back on every purchase, every day
For Average, Fair, Limited Credit
You've successfully subscribed!

Please specify the following:All these fields are optional

Your Credit History
Themes you are interested in:

By providing this information you help us make our news letters more useful and informative. Thank you!