JPMorgan Chase & Co. agreed to pay $100 million to settle credit-card holder claims that the bank increased their required minimum payments after promising a fixed interest rate.
The accord resolves a class action filed on behalf of 1 million cardholders pending in federal court in San Francisco. The $100 million settlement fund represents about one-half of the up-front transaction fees cardholders paid on their credit card loans, lawyers for customers said in a court filing yesterday.
A trial in the case was scheduled to begin this month, according to the filing.
Jennifer Zuccarelli, a spokeswoman for New York-based JPMorgan, didn’t immediately respond to an e-mail seeking comment on the settlement.
The case is In Re: Chase Bank USA, N.A. "Check Loan" Contract Litigation, 09-2032, U.S. District Court, Northern District of California (San Francisco).