March 03, 2009 18:11 ET

Milberg LLP Files Class Action for Breach of Contract on Consumer Loans Against Chase Bank

Chase Bank Sued for Credit Card Promotions

NEW YORK, NY--(Marketwire - March 3, 2009) - Milberg LLP filed a class action lawsuit against Chase Bank, N.A. ("Chase") and its parent company, J.P. Morgan Chase & Co. ("J.P. Morgan") alleging the bank deceptively marketed promotional interest rates on credit cards and then breached agreements with consumer who accepted the offers. The class action was filed on behalf of Chase customers, after the bank more than doubled minimum monthly payments and imposed monthly fees of $10, changing the terms of promotional offers that represented that the low rate was for the life of the loan.

"The case seeks to hold Chase to its promises and advertising. Consumers have kept up their end of the bargain. Chase has not," said Andrei Rado, a partner at Milberg LLP's office in New York. Jeff Westerman, a partner at Milberg's Los Angeles office, added that, "Chase's conduct is particularly galling because J.P. Morgan took billions as one of the biggest recipients of taxpayer bailout money, ostensibly to free up credit and stimulate the economy, then turned around and made credit more expensive and created greater financial hardship for consumers already suffering from recession by changing the terms it used to lure consumers with for years."

The action is pending in federal court in the Central District of California. The complaint alleges that Chase offered balance transfer loans, cash advances, and "convenience check" loans with annual interest rates of 3.99%, which Chase expressly promised would be "for the life of the loan." The loans were popular with consumers, who paid non-refundable fees, such as balance transfer or cash advance fees, in order to take advantage of the offered APR. The complaint alleges that earlier this year, despite charging consumers for the deal and promising that the APRs were "for the life" of the loans, Chase unilaterally told customers they had to either pay off the loans within 30 days, accept a "service charge" on the loans (on which it charged interest), or pay a higher APR of 7.99%. The complaint seeks class action status, and alleges that Chase, by its actions, has breached its contract with customers and violated state consumer protection laws.

About Milberg LLP -- Milberg LLP has been representing consumers in class actions for over 40 years and serves as lead counsel in federal and state courts throughout the United States. Please visit the Milberg website ( for more information about the firm. If you wish to discuss this matter with us, or have any questions concerning your rights and interests with regard to this matter, please contact the following attorneys:

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Contact Information

  • California Office:
    Jeff Westerman or Sabrina Kim
    New York Office:
    Andrei Rado
    Milberg LLP
    Phone number: (800) 320-5081

    Principle Office:
    One Pennsylvania Plaza
    New York, NY 10119