Chase credit card Girard Gibbs Files Class Action Lawsuit on Behalf of Chase Credit Cardholders
Background Over the last several years Chase credit card offered some of its most credit worthy customers an opportunity to consolidate debt through checks and balance transfers into fixed, low APR loans that would apply for the life of the loan balance. Chase regularly solicited consumers with these offers, and many people saw this as a good opportunity to consolidate their debt and pay down their balances.
Consumers accepted Chase’s offer with the understanding that they were required to make a minimum payment of 2% of their balance each month. This allowed consumers to budget and plan for the long term.
What is the Chase Credit Card Minimum Payment Class Action Lawsuit about? On July 26, 2009, Girard Gibbs and co-counsel filed a consolidated class action lawsuit against Chase on behalf of a national class of consumers in the District Court of Northern California.
The complaint alleges that beginning in November 2008, Chase began notifying consumers participating in the low APR, fixed for life offers that their minimum monthly payment would increase from 2% of the loan balance to 5% of the loan balance, and some accounts would also be charged a $10 service fee, which Chase now says it has refunded.
For most customers the increase in the minimum payment meant that they suddenly had to come up with hundreds of extra dollars each month to meet this new payment. If you wish to review a copy of the complaint, you may view it here.
Girard Gibbs attorney, Eric H. Gibbs, states, “Chase’s conduct is having a real impact on our clients, particularly in these tough economic times. Our clients are people who made sound decisions in how to manage their long term debt, only to have Chase change the rules because it is not reaping enough profit from our clients’ accounts. It is an important issue for the courts to address in a meaningful way.”
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