A new lawsuit against JP Morgan Chase was filed on Tuesday, accusing the financial giant of violating the Truth in Lending Act by imposing unannounced fees and high interest rates on customers who used the bank’s products to purchase digital currency. The suit alleges that Chase failed to provide the proper notice to its customers before applying significantly higher cash advance costs to those purchases.
The plaintiff, Brady Tucker, is an Idaho native who reportedly incurred an unexpected $143.30 in fees, as well as $20.61 in interest as the result of five separate digital currency purchases earlier this year. According to Reuters, Tucker has said that there may be thousands of similarly-situated Chase customers who were also hit with these types of charges.
JP Morgan Chase stopped allowing its customers to use the bank’s credit cards for digital currency purchases, effective February 3 2018. Tucker’s lawsuit alleges that the higher fees he incurred were attached to cryptocurrency purchases that occurred prior to that February 3 change in Chase’s crypto policy. It also alleges that Tucker had tried to resolve the charges by contacting the bank’s customer service, to no avail.
The lawsuit was filed as a potential class action suit in the U.S. District Court for the Southern District of New York. Tucker is reportedly seeking compensation for actual damages incurred, as well one million dollars in statutory damages.