JPMorgan sued for surprise cryptocurrency fees

JPMorgan sued for surprise cryptocurrency fees

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JPMorgan Chase sued over cryptocurrency feesIn Manhattan, JPMorgan Chase & Co has been sued for charging surprise fees when it cut off customers buying cryptocurrency with credit cards in late January and started treating digital coin purchases as cash advances.


The class-action lawsuit claims JPMorgan charged extra fees and exorbitant interest rates on credit card advances for cryptocurrency buys and refused to refund fees when customers complained.


Like many other international banks, JPMorgan was concerned about credit card risk for purchases in the volatile cryptocurrency market as prices plummeted in the new year.


outrageous credit card fees for cryptocurrencyBanks in Britain, the US and Canada, including Lloyds Banking Group Plc, Virgin Money, Citigroup and Bank of Montréal banned the use of credit cards to buy cryptocurrencies.


Idaho resident leads class-action suit


Idaho resident Brady Tucker said he was charged a fee of $143.30, as well as $20.61 in surprise interest charges purchases between Jan 27 and Feb 3.


The lawsuit says Tucker had no advance warning by the bank, and JP Morgan “stuck the plaintiff with the bill, after the fact of his transactions, and insisted that he pay it.”


cryptocurrency fee lawsuitThe lawsuit also claims the bank violated the US Truth in Lending Act, which requires credit card issuers to advise customers in writing about significant changes in service charges or terms. The lawsuit is seeking actual damages and statutory damages of $1 million.


Tucker said he called to complain the lack of notice and JP Morgan refused to reduce the fees and charges. He believes there are thousands of other US bank customers with similar charges who could join the lawsuit.


That million dollars could buy a lot of bitcoin as well as force banks to re-examine how they handle customers who buy cryptocurrency using their credit card or other accounts. Stay tuned.