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JPMorgan Chase, the largest U.S. bank, is facing legal action as five customers initiate a proposed class action, alleging the bank unfairly imposed fees for bounced checks, despite circumstances beyond their control.
Unjustly Penalized Customers
In the lawsuit filed on Tuesday night, customers claim that Chase deducted $12 in “deposited item returned fees” when checks they attempted to deposit were returned unpaid. Describing these fees as “junk fees,” the customers denounce them as “unconscionable” and “predatory.” They refer to a 2022 Consumer Financial Protection Bureau bulletin suggesting that indiscriminate charging of such fees may be illegal.
Chase’s Fee Disclosures Under Scrutiny
The legal action highlights Chase’s perceived acknowledgment of the unfairness of its fees, pointing to March 2023 when deposit agreements and fee schedules ceased disclosing them. The customers assert that Chase unfairly penalized them for issues with checks they did not originate, emphasizing that they were faultless victims of financial penalties.
Class Action Seeks Damages
The complaint, seeking a minimum of $5 million in damages for Chase customers nationwide, alleges violations of consumer protection laws in New York, California, Illinois, and New Jersey. This proposed class action is positioned to challenge unfair banking practices in line with the Biden administration’s call for transparency and crackdown on hidden fees across various industries.
Legal Response to Industry-Wide Unfair Practices
Lisa Considine, representing the customers, characterizes the fees as part of a pervasive and unfair industry practice that penalizes consumers for circumstances beyond their control. This legal battle echoes broader concerns raised by the Biden administration, aiming to address hidden and surprise fees in the banking sector, among others, impacting Americans significantly.