You remember Jamie Dimon, right? The JPMorgan Chase (NYSE:JPM) CEO who once called Bitcoin (BTC) a major fraud back in September of last year. Reuters just reported that JP Morgan Chase is being sued for the unauthorized fees added to customer accounts for cryptocurrency purchases. The Manhattan federal court is accusing JPM of implementing charges on cryptocurrency purchases without warning its customers; when cryptocurrency was bought with its credit cards, JPM charged the purchases as cash advances, unbeknownst to the buyer.
Several banks around the globe started banning its customers from purchasing cryptocurrency with their credit cards. Banks such as Lloyd Banking Group Plc (LON:LLOY), Discover Financial Services (NYSE:DFS), Virgin Money (LON:VM), Bank of America (NYSE:BAC). Last week, it was reported that the major Canadian bank, Bank of Montreal (BMO), has even gone as far as banning Interac E-Transfers from checking accounts.
JP Morgan Chase is being sued by (the named plaintiff in the lawsuit) an Idaho resident by the name of Brady Tucker. He was hit with $143.30 in fees and an added $20.61 in surprise interest charges by Chase for his five cryptocurrency purchases made between January 27th and February 2nd. Thousands of other customers have been hit with these charges, most probably without their immediate knowledge.
The issue? Tucker called Chase’s customer service department to get the fees removed but the agent flat-out refused. Customers were given no advanced warning of these charges and have now been denied removal of these charges. The lawsuit accuses JPMorgan Chase of violating the U.S. Truth in Lending Act, which requires credit card issuers to notify its customers in writing of any significant changes in terms or charges.
Jamie Dimon’s company is now being sued and the plaintiff and his lawyers are asking for actual damages and statutory damages of $1 million. I feel this is just the beginning of lawsuits against these major financial institutions that banned cryptocurrency purchases. Hopefully, the others got all their ducks in a row beforehand.
Not a good look Mr. Dimon, not a good look.
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