Chase Blank Check / Balance Transfer Loan Litigation
N/AOUTCOME: $100 million nationwide class settlement and injunctive relief.
Chuck Marshall participated as a member of the executive committee in a nationwide class action against Chase Bank USA, N.A. (“Chase”), the nation’s largest credit card issuer. The suit alleged that C ... hase promised borrowers low interest rates that were to remain fixed for the "life of loan." But, in late 2008 and early 2009, the bank unilaterally raised the minimum payment for over 1 million of these borrowers to 5 percent of the balance. The only way credit card customers could avoid the higher payments was to agree to a higher interest rate. In November 2012, U.S. District Judge Maxine M. Chesney of San Francisco approved a $100 million nationwide class settlement of the lawsuit. This lawsuit addressed the scope of discretion credit card companies have in altering the terms of their customers’ agreements, and attacked whether credit card companies may use their discretion to undermine previous promises made to consumers.
