JP Morgan Chase have recently settled a class-action lawsuit filed against the credit card giant which claimed that the cost associated with their payment protection program was not made clear to cardholders.
The lawsuit accused JP Morgan Chase of “deceptively marketing its Payment Protection Products.” In addition, case also alleges that it was made too difficult for cardholders to claim the benefits of the program and that it was difficult to un-enrol from the program.
The lawsuit claims that Chase payment protection products were improperly marketed and sold. The Chase have agreed a $20 million dollar settlement, despite the credit card issuer denying any wrong doing.
Any Chase cardholders who were charged for a payment protection product between September 2, 2004 and November 11, 2010 may be eligible for a portion of the settlement, although checks will be small, somewhere in the region of $15 to $60 less any applicable fees or expenses.
Claims were accepted by cardholders who held Chase issued credit cards and private label cards including those credit cards issued on behalf of Kohl’s, Best Buy, TJMaxx and Circuit City
The amount of settlement which each qualifying cardholder will be based upon a number of different factors, including whether or not they attempted to claim protection benefits from the credit card issuer, whether their request was accepted or denied and the total number of cardholders who submit a claim for a settlement check.
There may also be various other factors included. Settlement payments will be issued to cardholders either by check or by a statement credit applied to the cardholder’s account. Settlements will be overseen by Kardtronics.
Chase pitched their Payment Protection Plan as a cushion for Chase cardholders who are affected by unexpected events in their lives which causes some degree of financial upheaval. Qualifying events were listed as including divorce, sudden hospitalization and call to military duty.
In the even to of cardholders claiming under the payment protection, all payments due on their accounts would be frozen for between a month and two years depending on the particular event in question. According to the published terms and conditions, the price of the payment protection is
only 89¢ per $100 of your ending monthly credit card statement balance. This fee will be conveniently included on your monthly credit card statement so you don’t have to worry about writing a separate check or missing a Plan payment.
Similar Personal Finance News
- FTC Shut Down Bad Customer Scam
- Credit Card Reform and Mitt Romney
- More Protected Credit Cards In 2013
- Overwhelming Financial Truths: How They Affect Everything
- New Medical and Insurance Scores Launched By FICO
- 3 Years In, Credit CARD Act Working
- Consumers Not Interested in Mobile Banking