Tuesday, July 24, 2012

JPMorgan coughs up $100M in credit-card settlement





JPMorgan Chase & Co. has agreed to pay $100 million to settle litigation by credit card customers who accused the largest U.S. bank of improperly boosting their minimum payments as a means to generate higher fees, the Chicago Trib reports.

The class-action settlement resolves a three-year-old case stemming from Chase's decision in late 2008 and 2009 to boost minimum monthly payments for thousands of cardholders to 5 percent of account balances from 2 percent.

It comes as JPMorgan, like many of its main rivals, addresses a wide range of litigation over its banking practices, such as whether it conspired to overcharge retailers on card transactions, or manipulated benchmark interest rates….

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