JPMorgan was sued by a group of customers who felt violated on their crypto purchase using Chase credit cards. Back in 2018, some customers used JPMorgan’s Chase credit cards to purchase cryptocurrencies from Coinbase. Without their knowledge, JPMorgan charged them huge interests due to JPMorgan’s negativity toward cryptocurrencies.
One of the “victims”, Brady Tucker, mentioned that he overpaid by $160 in credit card fees and interests just because he used his credit card to buy cryptocurrencies. If the same credit card was used for other purchases, he wouldn’t have to pay these $160 worth of fees and interests.
According to the plaintiffs, JPMorgan broke the Truth in Lending Act because JPMorgan never publicly stated nor informed its customers that crypto purchases would be deemed cash advances. The lawsuit was created two years ago, but only recently, JPMorgan agreed to settle. Due to this agreement, JPMorgan would have to pay $2.5 million to the victims.
JPMorgan itself is known to be one of the banking institutions that have made a U-turn on cryptocurrencies. Previously JPMorgan was very sceptical about Bitcoin and cryptocurrencies, but recently they have launched their own stablecoin called JPM. Not only that, but JPMorgan has also allowed banking-related services to Gemini and Coinbase.
Source: News.bitcoin.com
