One of the largest financial services providers in the US is being sued for charging the people who wished to invest in cryptocurrencies extra fees. Reportedly JP Morgan has also increased the interest rates on cryptocurrencies.
The person who has filed a lawsuit against JP Morgan is Brady Tucker. Tucker declared that he had to pay $143.30 extra fees and an additional $20.61 interest fee for transactions which he made in January and February 2018. Tucker claimed that at first glance the amount is not very big, but when you add up all the customers that JP Morgan has the number can become breathtaking.
Tucker filed the suit in federal court, and accuses the bank of “charging surprise fees when it stopped letting customers buy cryptocurrency with credit cards in late January and began treating the purchases as cash advances.”
According to the law firm that initiated the lawsuit Finkelstein & Krinsk LLP, Tucker tried to discuss with the managers from JP Morgan and solve the issue behind closed doors. But the bank refused to take his request into account.
Reuters reported that the bank sent to the complainant the bill “after the fact of his transactions, and insisted that he pay it.”
JP Morgan Refused to Give Refunds
According to some investigations made by the law firm, JP Morgan placed very high-interest rates and extra fees for cash advances. Furthermore, once the customers found out that they had to pay extra money to acquire cryptocurrencies, the asked for refunds. In response, the bank declined their request.
“Chase silently smacked them with instant-cash-advance fees, plus much higher interest rates than normal, and left them without any recourse,” declared Tucker.
Until now the employees and executives of JP Morgan did not comment on the lawsuit, but they have stated that they have stopped the crypto purchases because of their “risky nature.”
Reuters reported that the lawsuit will ask for statutory damages of $1 million.
While the court will clear this situation, we have to mention that any financial institution has to abide the Truth in Lending Act. The Act was created so that the customers will be protected by nontransparent changes that are made to the terms and agreements of a financial contract. Including hidden fees or undisclosed interest rates.
“The complete lack of fair notice to Chase’s cardholders caused them to unknowingly incur millions of dollars in cash advance fees and sky-high interest charges on each and every crypto purchase”
While the crypto market is not sufficiently regulated in the US, we will have to wait and see what verdict will give the court.