February 9, 2009
Credit card policy change provokes suit
A New York Law firm said it filed a class-action lawsuit against J.P. Morgan & Chase for monthly service fees attached to some low-interest credit cards.
Affected customers calling Chase said they were offered a $10 monthly fee and a higher minimum payment schedule -- jumping minimum payments from 2 percent to 5 percent of their balances -- or a higher interest rate, USA Today reported Monday.
The change, affected about 400,000 accounts, she said.
Moves like this are not only bad for me as a customer, but bad for the economy, said Peter Norman, an economics professor at the University of North Carolina-Chapel Hill.
Linda Sherry, a director at Consumer Action said customers should be offered a choice the option of paying old balances with the original policy.
The firm, Giskan Solotaroff Anderson & Stewart, said it filed suit for
customers who have been charged a monthly service fee on balance transfers to their Chase credit cards that have low fixed APRs for the life of the loan.