JPMorgan to pay cardholders in $100M settlement

(Timothy A. Clary/AFP/Getty Images, file)

(CBS/AP) NEW YORK - JPMorgan Chase (JPM) has agreed to pay $100 million to settle a lawsuit by customers who claim the nation's largest bank improperly increased minimum payments on their credit card bills.

The proposed settlement would end a three-year-old case against Chase for raising the cardholders' minimum payment from 2 percent of account balances in 2008 and 2009 to 5 percent. Cardholders claim Chase did it to make extra money on fees it charged to people who couldn't meet higher payments.

The settlement was disclosed in a filing Monday with the U.S. District Court in San Francisco.

Watch: JPMorgan in damage control mode
JPMorgan Chase: London whale swallows $2B
Survey: Fewer than 1 in 4 trust financial system

In the court document, Chase argued that increasing the monthly payments was a reasonable and sensible response to unprecedented economic turmoil and impending regulatory changes.

JPMorgan Chase & Co. didn't respond to request for comment on Tuesday.

A judge plans to review the settlement in August.

Comments

Market Data

Market News

Stock Watchlist