Brady Tucker, a holder of a credit card issued by JPMorgan Chase & Co., sued the bank for charging “sky-high” interest rates and additional fees to customers who used their credit cards to buy bitcoins and other cryptocurrencies. He filed his lawsuit in Federal court in Manhattan on Tuesday, April 10.
According to Tucker, JPMorgan has been treating his routine cryptocurrency purchases at Coinbase exchange as cash advances since January 2018 while charging him 30 percent yearly interest rate. He was charged a total of $143 in fees plus $20.61 in interested in January and February alone without any notifications on the amounts withheld from him by the bank, as the claim reads.
As stated by the claimant, he was using his credit card for buying cryptocurrency because it provided for instant purchases, whereas buying them via his bank account would require several days of processing. If he could get to know about high instant fees charged by the bank for doing so, he would not use his credit card for making such purchases, the claim reads.
He seeks $1 000 000 in compensation for the damages and refund of all the fees charged. He wants his lawsuit to be qualified as class action, as he claims he is not the only bank customer who was “duped” in such a way.
“Chase silently smacked them with instant-cash-advance fees, plus much higher interest rates than normal, and left them without any recourse,” – Tucker said.
Though the representatives of the bank have not yet provided their comments on the matter, it is known that this year saw a number of large US banks and other financial institutions, such as JPMorgan, Bank of America Corp. and Citigroup Inc., beginning to decline cryptocurrency purchases for fear of borrowers might not pay back in case if tokens the latter invest in turn out to be a scam.