Chase WaMu HELOC Class Action Certified

San Jose, CA: A class action lawsuit brought by a couple in Cupertino who allege Washington Mutual and JPMorgan Chase reduced credit limits on their home equity lines of credit (HELOC) without valid reasons has been certified by a federal judge.

The lawsuit, brought by Jeffrey and Jenifer Schulken in 2009, alleges violations of the Truth in Lending Act violations and unfair competition among other claims. The Cupertino couple allege they were informed by Chase, by letter, that their home equity credit lines would be suspended because they did not have enough monthly income to satisfy their debts. The Schulken's allege that the monthly income of $11,200 that Chase claimed the couple stated on their applications, was inaccurate, that they had never "provided such an inflated income figure to WaMu, and that if the Schulkens' file indicated such an income, then WaMu had intentionally misrepresented their income."

After four attempts by Chase to have the complaint dismissed, two classes have now been certified: the "inability to verify" class, and a subclass of borrowers whose credit lines were suspended because Chase could not verify their financial circumstances.

The plaintiffs' class definition to include "only those members who signed contracts that (1) arise from heritage WaMu customers, and (2) state that the borrower must provide, upon the lender's request, 'a current financial statement, new credit application, or both.'"

Chase WaMu HELOC Class Action Legal Help

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Published on Jan-20-12