Class Action Plaintiffs: Eugene Reede Stockton et al.
Class Action Defendants: Chase Bank USA, N.A.
Class Action Allegations: Chase routinely made balance transfer offers to its credit card customers, often enticing them with offers of low APRs for the life of the loan. Indeed, Chase routinely offered BTOs at 2.99%, 3.99% and 4.99% for the life of the loans. These rates were well below the normal purchase rates and generally below current market rates for unsecured and open-ended consumer credit, making such offers very attractive to consumers.
In or around December 2008, Chase purportedly sent several of its customers a change in terms notice that stated the following:
Chase admitted in its change of terms notice that one of the main reasons for implementing this change was to generate more revenue of its low APR loans. The balance transfer offers offered low APRs for the life of the loan. Charging a $10 fee effectively modifies the APR agreed upon by parties which was to remain static for the life of the loan. Unilaterally changing the terms of the loan and effectively increasing the agreed upon APR is an unfair business practice and a breach of contract.
If you believe that you have also been harmed because of Chase Bank USA's actions, feel free to contact us to discuss a role in this class action.