Chase Bank will soon storm into the
Bay Area resident Diane Rooney and
According to the suit, Chase offered its credit card customers separate loans by sending them "blank checks," loans typically not to exceed their credit card limit, which promise lower interest rates -- from 2.99 percent to 4.99 percent APR -- than credit card debt. Customers were allegedly promised the lower rate would stay in effect "for the life of the loan."
Yet beginning in November, , the suit states, the bank notified customers that their check loans would now carry an additional monthly "Service Charge-Finance Charge" and the minimum monthly payment would be raised from 2 to 5 percent.
As if we needed one more reason to hate this country's banks right now.
"It looks to me they're trying to generate a lot of revenue to come in greater amounts sooner," says Michael Sobol, the attorney on the case from San Francisco firm Lieff, Cabraser, Heimann & Bernstein. "It strikes me as a pretty heavy-handed instance of a company exercising its superior market power and changing the terms on people at variance with terms under which they took on the loan -- and we think that's unfair."
Sobol said the case was well positioned to become a class action suit to include all Chase credit card customers offered the loans. Chase representatives denied to comment on pending litigation.
Welcome to California, indeed.