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JP Morgan Hit With Lawsuit Over Bitcoin Purchase Fees
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JP Morgan Hit With Lawsuit Over Bitcoin Purchase Fees

According to Reuters JPMorgan Chase & Co has been hit with a lawsuit in Manhattan federal court accusing it of charging surprise fees when it stopped letting customers buy cryptocurrency with credit cards in late January and began treating the purchases as cash advances.

The lawsuit accuses Chase of violating the U.S. Truth in Lending Act, which requires credit card issuers to notify customers in writing of any significant change in charges or terms.

Simply put, the bank switched from charging regular interest rates to charging, higher, cash advance rates on purchases of cryptocurrencies without notice to customers about the change.

Brady Tucker, the plaintiff named in the April 10 complaint, said that Chase Bank incorrectly charged him $143.30 in fees and $20.61 in interest stemming from purchases made using his Chase card in January and February.

Brady is being represented by Finkelstein & Krinsk LLP, a San Diego-based law firm.

The lawsuit said:

“With no advance warning, Chase “stuck the plaintiff with the bill, after the fact of his transactions, and insisted that he pay it,”

Hundreds or possibly thousands of other Chase customers were hit with the charges, Tucker said. The plaintiff’s lawyers – who are seeking the return of the fees as well as “additional statutory damages in the aggregate amount of $1 million” – are seeking class-action status. While the complaint says that the size of the class cannot be determined prior to discovery, it argues that this group likely consists of “hundreds or thousands of members.”

Put simply the lawsuit is asking for actual damages and statutory damages of $1 million.

You can read the full docket on Scribd.com

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