Customers alleged in the Chase check loan class action lawsuit that they accepted promotional loan offers that were supposed to have a fixed interest rate (APR) until the loan balance was paid off in full. However, in November 2008 and June 2009, Chase sent some of these cardholders a “Change in Terms” notice, raising their minimum monthly payment from 2% to 5% of their outstanding account balance and, in some cases, applying a $10 monthly fee to their account. Plaintiffs in the class action lawsuit alleged this Change in Terms was improper.

Chase denies any wrongdoing, but has agreed to establish a $100 million class action lawsuit settlement fund to resolve the litigation.

Class Members of the Chase check loan class action lawsuit settlement include all persons or entities in the U.S. who entered into a loan agreement with Chase, whereby Chase promised a fixed APR until the loan balance was paid in full, and (i) whose minimum monthly payment was increased by Chase to 5% of the outstanding balance, or (ii) who were notified by Chase of a minimum payment increase and subsequently closed their account or agreed to an alternative change in terms offered by Chase.

If the Chase check loan settlement becomes effective after the November 16, 2012 Fairness Hearing, Class Members will receive a settlement check in the amount of their individual share of the class action settlement fund. Each Class Member’s share will be comprised of a $25 base payment PLUS additional money based on how they were affected by the Change in Terms.

You do not need to do anything to receive benefits from the Chase check loan class action settlement. If the settlement become effective, you will be mailed a payment to the same address you received a Settlement Notice at. If you did not receive this notice and believe you are a Class Member, contact the Settlement Administrator to update your contact information by calling 1-800-460-4936.

More information on your rights in the Chase Check Loan Class Action Lawsuit Settlement can be found at www.ChaseMinPaymentLawsuit.com.

The case is In re: Chase Bank USA NA “Check Loan” Contract Litigation, Case No. 9-md-2032, U.S. District Court, Northern District of California.

 

 

Updated September 3rd, 2012

 

All class action and lawsuit news updates are listed in the Lawsuit News section of Top Class Actions