JPMorgan sued over fees for cryptocurrency purchases

JPMorgan Chase & Co has been hit with a lawsuit in Manhattan federal court. So, accusing it of charging surprise fees when it stopped letting customers buy cryptocurrency. Especially, with credit cards in late January and began treating the purchases as cash advances.

The lawsuit mentioned that Chase (JPM.N) charged both extra fees and substantially higher interest rates.  Especially, on the cash advances than on the credit cards. It also refused to refund the charges when customers complained.

With no advance warning, Chase “stuck the plaintiff with the bill, after the fact of his transactions, and insisted that he pay it,” the lawsuit said. A lawyer for Tucker could not be reached for comment.

The lawsuit accuses Chase of violating the U.S. Truth in Lending Act, which requires credit card issuers to notify customers in writing of any significant change in charges or terms. The lawsuit is asking for actual damages and statutory damages of $1 million.

  Chase spokeswoman Mary Jane Rogers declined to comment on the lawsuit. Customers can use their Chase debit cards to buy cryptocurrency from their checking accounts without incurring cash.

Bitcoin has fallen in value by more than half from a peak of almost $20,000 in December.

Tucker called Chase’s customer service line to dispute the charges but the bank refused to remove them, according to the lawsuit.
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