American multinational investment bank and financial services holding company JPMorgan Chase has decided to settle a class-action lawsuit against it, for $2.5 million. The financial giant agreed to pay the fee to compensate its customers who were overcharged for purchasing digital assets with Chase credit cards.
The class-action lawsuit was brought against JPMorgan back in 2018 when the company overcharged its customers for buying cryptocurrencies, as it categorized the purchases as cash advances. The bank has now agreed to compensate users, but did not admit to any faults. The class-action lawsuit had 62,000 members.
A motion in the Manhattan federal court reads that the members of the suit will receive “about 95% of the fees they said they were unlawfully charged.” Some claims specify that JPMorgan ran afoul of the Truth in Lending Act, because it failed to let its customers know that the crypto purchases were categorized as cash advances. JPMorgan had initially refused to refund the fees, a decision that led to the class-action lawsuit. The motion further reads:
“[JPMorgan] has agreed to enter into this Agreement to avoid the further expense, inconvenience, and distraction of burdensome and protracted litigation, and to be completely free of any further claims that were asserted or could have been asserted in the Action.”
JPMorgan recently revealed that Bitcoin’s price is right where it should be, according to its ‘intrinsic value’ calculation.
Image Credits: Pixabay
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