Chase Bank’s “Blank Check” Loans

chaseTo Contact an attorney at Green & Noblin, P.C., about your case, click here.

What is this class action about?

Green & Noblin, P.C. is representing clients regarding “blank check” loans or balance transfer promotional offers from Chase Bank USA, N.A. (“Chase”) that promised a low interest rate for the life of the loan or until paid off. Chase credit card customers allege that they were offered loans in the form of a balance transfer or blank checks that were connected to but with different terms than the credit cards. For the balance transfer loans, most consumers paid a substantial balance transfer fee to lock in their low interest rate APR for the life of the loan. The balance transfer and “blank check” loans offered by Chase had terms that were at significantly lower interest rates usually below 2.99%, 3.99% or 4.99% “for the life of the loan.”

In November 2008, Chase sent its customers, with outstanding balances on this type of loan, a “change in terms” notice stating that the minimum monthly payments would go up by 150% from 2% of the balance to 5% of the balance. The new monthly charges effectively increase the customers’ interest rates. Chase then told consumers that they must pay off their loans in full immediately or be subject to the new loan terms with higher interest rates. Green & Noblin, P.C. believes this practice to be unfair and illegal.

What Should You Do to Protect Your Rights?

First contact us to communicate with an attorney about your situation. If you have been impacted by Chase’s conduct that is described above, you should probably file a class action lawsuit to correct the situation. The attorneys at Green & Noblin, P.C. are experienced class action attorneys, particularly with regard to this type of credit card claim. Click here to see a 9th Circuit Court of Appeals ruling we obtained in favor of card holders with similar claims. And although there are some cases already on file, these cases may not adequately protect your interests, particularly if you live in one of the states listed below. To see a copy of the Complaint that Green & Noblin, P.C. filed in Oregon, click here.

What else did Chase do?

Chase treated all affected card holders the same by sending out a mass mailing of its “Important” Change in Terms notice. However, before doing that, Chase inserted provisions in its cardmember agreements that purport to require every cardholder to bring an individual arbitration, waiving rights to present their claims in court and prohibiting them from joining together in a class action. These terms are so onerous that many states refuse to enforce them. Cardholders who live in any of the following states should consider filing a lawsuit in their state to make sure they receive the benefit of their favorable laws on this issue. These states include:

  • Alaska
  • Arizona
  • California
  • Illinois
  • Florida
  • Maine
  • Michigan
  • Montana
  • Massachusetts
  • New Jersey
  • North Carolina
  • Ohio
  • Oregon
  • New Mexico
  • Pennsylvania
  • Washington
  • Wisconsin
  • West Virginia

If you are a Chase credit card holder affected by a “change in terms notice” that increased your payment or added a $10 service charge to you account, please contact Green & Noblin, P.C. by clicking here.