LAWSUITS NEWS & LEGAL INFORMATION
Preliminary $100M Settlement Approved in Chase Check Loan Class Action
This is a settlement for the Chase Manhattan Mortgage Corp (unfair business practices) lawsuit.
New York, NY: Preliminary court approval has been granted in a credit card class action lawsuit brought against Chase Bank over allegations that its loan and APR rates were increased improperly.
Specifically, the lawsuit, brought by Chase credit cardholders, claimed those customers accepted promotional loan offers whereby the loan was subject to a fixed interest rate (APR) until the loan balance was paid off in full. In November 2008 and June 2009, Chase sent some of these cardholders a "Change in Terms"notice, raising their minimum monthly payment from 2% to 5% of their outstanding account balance and, in some cases, applying a $10 monthly fee to their account.
Who Is Included in the Class?
All persons or entities in the United States who entered into a loan agreement with Chase, whereby Chase promised a fixed APR until the loan balance was paid in full, and (i) whose minimum monthly payment was increased by Chase to 5% of the outstanding balance, or (ii) who were notified by Chase of a minimum payment increase and subsequently closed their account or agreed to an alternative change in terms offered by Chase.
How Will Settlement Payments Be Determined?
If the Settlement becomes effective, Class Members will be sent a settlement check by the Settlement Administrator in the amount of their individual share of the Settlement Fund available for distribution. Each Class Member' share will be comprised of: (i) a $25.00 base payment; plus (ii) for most, but not all, Class Members, an additional payment intended to give the most compensation to those Class Members most affected by the Change in Terms, taking into account, among other things, the amount of the initial transaction fees paid for their fixed rate promotional loans (if there is no record of a transaction fee, an average transaction fee will be used), how much of the promotional balances were paid back before the Change in Terms occurred, how long the promotional loans were in the Class Member' account before the Change in Terms, and whether and when the promotional balances were restored to their original terms after the Change in Terms were announced. A limited number of persons were notified of the change in terms but, for example, did not have balances at the time the change in terms took effect, and will not receive an additional payment (these Class Members will still receive the $25.00 base payment).
What Are the Options?
You do not need to do anything in order to receive the benefits of the Settlement. If the Settlement becomes effective, you will be mailed a Settlement Payment as described above and in the Settlement Notice you received by mail.
The deadline to comment or object to the Settlement is October 5, 2012 (postmarked). You do not need to object or comment on the Settlement in order to receive a Settlement Payment.
What Happens Next?
The Court will hold a "Fairness Hearing"on November 16, 2012, to consider whether to give final approval to the Settlement and whether to award attorneys' fees and expenses to Class Counsel and service awards to Plaintiffs in this and related actions.
For further information go to ChaseMinPaymentLawsuit.com.
Published on Sep-5-12
Specifically, the lawsuit, brought by Chase credit cardholders, claimed those customers accepted promotional loan offers whereby the loan was subject to a fixed interest rate (APR) until the loan balance was paid off in full. In November 2008 and June 2009, Chase sent some of these cardholders a "Change in Terms"notice, raising their minimum monthly payment from 2% to 5% of their outstanding account balance and, in some cases, applying a $10 monthly fee to their account.
Who Is Included in the Class?
All persons or entities in the United States who entered into a loan agreement with Chase, whereby Chase promised a fixed APR until the loan balance was paid in full, and (i) whose minimum monthly payment was increased by Chase to 5% of the outstanding balance, or (ii) who were notified by Chase of a minimum payment increase and subsequently closed their account or agreed to an alternative change in terms offered by Chase.
How Will Settlement Payments Be Determined?
If the Settlement becomes effective, Class Members will be sent a settlement check by the Settlement Administrator in the amount of their individual share of the Settlement Fund available for distribution. Each Class Member' share will be comprised of: (i) a $25.00 base payment; plus (ii) for most, but not all, Class Members, an additional payment intended to give the most compensation to those Class Members most affected by the Change in Terms, taking into account, among other things, the amount of the initial transaction fees paid for their fixed rate promotional loans (if there is no record of a transaction fee, an average transaction fee will be used), how much of the promotional balances were paid back before the Change in Terms occurred, how long the promotional loans were in the Class Member' account before the Change in Terms, and whether and when the promotional balances were restored to their original terms after the Change in Terms were announced. A limited number of persons were notified of the change in terms but, for example, did not have balances at the time the change in terms took effect, and will not receive an additional payment (these Class Members will still receive the $25.00 base payment).
What Are the Options?
You do not need to do anything in order to receive the benefits of the Settlement. If the Settlement becomes effective, you will be mailed a Settlement Payment as described above and in the Settlement Notice you received by mail.
The deadline to comment or object to the Settlement is October 5, 2012 (postmarked). You do not need to object or comment on the Settlement in order to receive a Settlement Payment.
What Happens Next?
The Court will hold a "Fairness Hearing"on November 16, 2012, to consider whether to give final approval to the Settlement and whether to award attorneys' fees and expenses to Class Counsel and service awards to Plaintiffs in this and related actions.
For further information go to ChaseMinPaymentLawsuit.com.
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