JPMorgan Settles Lawsuit Over Credit Card Digital Currency Purchases

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Banking giant JPMorgan Chase has reached a settlement in a lawsuit on changes to the fees for purchasing digital currency on its credit cards, ending legal action in this regard.

the unexpected changes to the fee structure were introduced in 2018, which the complainants said violated cardholder terms of service. Chase Bank customers Brady Tucker, Ryan Hilton and Stanton Smith filed a lawsuit after the bank implemented the new fee structure without providing prior warning to its customers.

In particular, Chase applied a cash advance fee for digital currency purchases, a position she has already defended. In a previous hearing, Chase argued that digital currency purchases could qualify as “cash transactions” and therefore the change in fees was not a violation of its terms.

In August, a judge upheld the plaintiffs ‘arguments by showing that the definition of “cash equivalent” specifically referred to instruments directly related to fiat currency, including money orders, cash and travelers’ checks.

Chase also pointed out a merchant category code change at Coinbase from “purchases” to “cash advances,” shifting the fee structures applicable to digital currency transactions to Chase cards.

The plaintiffs claim to represent a large number of affected Chase customers and seek full reimbursement of all charges they claim were wrongly applied. This is accompanied by a claim of $ 1 million in damages in connection with the charges.

The parties now have an additional 75 days to consider their next decision, before the plaintiffs can request that the action be reinstated.

This comes at a time when JPMorgan is further exploring blockchain technology. Last month, the bank released a 74-page state of the industry report, concluding that there was still time before the technology was adopted by the general public.

Nonetheless, the bank has been among the fastest-growing traditional institutions to support stablecoins. Its JPM Coin was tested as early as February 2019, becoming the first US commercial bank to successfully demonstrate its stablecoin in practice.

The settlement of an undisclosed amount brings the matter to a close without admission or denial of wrongdoing on the part of the bank.

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