JPMorgan Settles Class Action Lawsuit For $100 million
Banks continue to get it on the chin. After unexpected trading losses in billions, Libor
rate manipulations, and irregularities in credit card swipes, here is
the latest on another dispute hanging fire in the banking space.
JPMorgan Chase & Co. (NYSE:JPM) who
had been sued for unlawfully boosting their minimum monthly credit card
payments, has agreed to settle the three-year old class action lawsuit
by paying off $100 million, which is about 45 percent of the fees of
$220 million it earned as upfront charges for promotional credit card
loans.
The bank had been accused of persuading
customers to transfer card balances from other lenders, and thereafter
consolidate these balances into fixed-rate loans. The trouble started
when the bank bumped up the minimum loan monthly payment in some cases
from 2 percent to 5 percent, leading customers to incur fines for late
payments, or face high penalty rates.
In another area related to credit cards,
JPMorgan Chase & Co. (NYSE:JPM) is also involved with Visa
Inc (NYSE:V) and Mastercard Inc (NYSE:MA) in a $6.5 billion settlement
relating to claims by merchants alleging hidden swiping fees.
Today Wal-Mart Stores, Inc. (NYSE:WMT) followed Target
Corporation (NYSE:TGT) in panning the settlement, saying
the proposed deal “would not structurally change the broken market, or
prohibit credit-card networks from continually increasing hidden swipe
fees, which already cost consumers tens of billions of dollars each
year.”
Investigations on the manipulations by banks of the Libor are continuing.
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Is any one else keeping score? I've lost track of how much #JPMC has paid out since 2008.....I wonder what the Libor "manipulation" is going to look like. smh smh
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