Girard Gibbs Files Class Action Lawsuit on Behalf of Chase Cardholders

Background

Over the last several years Chase offered some of its most credit worthy customers an opportunity to consolidate debt through checks and balance transfers into fixed, low APR loans that would apply for the life of the loan balance. Chase regularly solicited consumers with these offers, and many people saw this as a good opportunity to consolidate their debt and pay down their balances. Consumers accepted Chase’s offer with the understanding that they were required to make a minimum payment of 2% of their balance each month. This allowed consumers to budget and plan for the long term.

What is the Chase Credit Card Minimum Payment Class Action Lawsuit about?

On July 26, 2009, Girard Gibbs and co-counsel filed a consolidated class action lawsuit against Chase on behalf of a national class of consumers in the District Court of Northern California. The complaint alleges that beginning in November 2008, Chase began notifying consumers participating in the low APR, fixed for life offers that their minimum monthly payment would increase from 2% of the loan balance to 5% of the loan balance, and some accounts would also be charged a $10 service fee, which Chase now says it has refunded.

For most customers the increase in the minimum payment meant that they suddenly had to come up with hundreds of extra dollars each month to meet this new payment. If you wish to review a copy of the complaint, you may view it here.

Girard Gibbs attorney, Eric H. Gibbs, states, “Chase’s conduct is having a real impact on our clients, particularly in these tough economic times. Our clients are people who made sound decisions in how to manage their long term debt, only to have Chase change the rules because it is not reaping enough profit from our clients’ accounts. It is an important issue for the courts to address in a meaningful way.”

Litigation Status

In September, Chase filed a motion asking that the federal court throw out the class action lawsuit. We vigorously opposed Chase’s motion. In her ruling, Judge Chesney denied Chase’s attempt to dismiss the case in its entirety, although she did find that some of the claims brought by Plaintiffs should not proceed. The net result is that our case will move forward to the next phases of the litigation. We will now be entering the discovery phase of the case where both parties exchange documents and information relevant to the case. Once initial discovery is completed, Plaintiffs will be filing a motion for class certification in May of 2010, which is the next crucial step in the case.

Am I included in the Chase Credit Card Minimum Payment Class Action Lawsuit?

If you entered into a loan agreement with Chase, whereby Chase promised a fixed APR until the loan balance was paid in full, and have been charged or notified by Chase that you will be required to make monthly minimum payments of 5% of your outstanding loan balance, you are currently a member of the proposed class. If you would like to learn more about our Chase Credit Card Minimum Payment Class Action Lawsuit and receive email updates, please fill out the form on the right for a free consultation with an attorney.

Why Girard Gibbs LLP?

Girard Gibbs is a national litigation firm specializing in securities litigation, consumer class actions and complex business litigation. Girard Gibbs' managing partner Daniel Girard was voted one of Northern California's Super Lawyers in 2007, 2008, and 2009 by Law & Politics, recognizing him as one of the top 5-percent of attorneys practicing in Northern California.