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JPMorgan Faces Lawsuit As Customers Are Overcharged For Cryptocurrency Purchases

JPMorgan Faces Lawsuit As Customers Are Overcharged For Cryptocurrency PurchasesJPMorgan Chase is allegedly having a lawsuit filed against them over the accusations that the bank overcharged its credit card users when they used funds to purchase cryptocurrencies.One of the plaintiffs, Brady Tucker, says that Chase Bank incorrectly charged him $143.30 in fees and $20.61 in interest stemming from purchases made using his Chase card in January and February. Brady is being represented by Finkelstein & Krinsk LLP, a San Diego-based law firm.Earlier this year, in February, customers of Coinbase, the largest U.S. cryptocurrency exchange, began complaining that their purchases carried hefty “cash advance” fees to appear on their card statements. The exchange publicly accused Visa Inc. and Mastercard Inc. of changing the exchange ’s merchant classification code, a move that instigated banks to treat card purchases of cryptocurrency on the website as cash advances.According to the complaint, prior to putting a hold on all purchases, the bank began treating such expenditures as “cash advances” in January, but did so “unbeknownst to Chase’s cardholders.” Attorneys for the plaintiff alleged that Chase Bank violated the Truth in Lending Act by not disclosing the policy shift.JPMorgan, Bank of America and Citigroup Inc. this year started declining cryptocurrency purchases, fearing borrowers might not pay and that cardholders might dispute charges if they receive tokens that turn out to be fraudulent or illegal.Tucker stated in his complaint that he often made purchases of cryptocurrency through Coinbase and other exchanges using his credit card and would pay them off by the end of the billing cycle without being charged extra fees. He said he and other credit-card holders were “duped.”The class-action lawsuit is claiming damage compensation worth $1 million.JPMorgan has not commented on the issue so far.