JPMorgan Chase has been sued by a credit card customer in Idaho over high interest rates and fees for buying cryptocurrency using credit cards.
According to media reports, Brady Tucker has filed a lawsuit against the banking giant in federal court in Manhattan.
The lawsuit claims that JPMorgan considered the cryptocurrency purchases as cash advances and levied higher charges than on the credit cards.
JPMorgan banned the use of its credit cards for buying cryptcurrencies in February this year. Tucker’s lawsuit claims that the bank did not issue any notice that the purchases will be treated as cash advances.
The bank reportedly slammed $143.30 fee and $20.61 surprise interest for five cryptocurrency transactions made between 27 January and 2 February, and refused a request for removal of charges.
Through the lawsuit, Tucker is now seeking actual and statutory damages of $1m. Tucker said that he used a credit card because it was the only means to make an instant cryptocurrency purchase on Coinbase.
Reuters quoted Chase spokeswoman Mary Jane Rogers as saying that the bank ceased processing credit card cryptocurrency purchases on 3 February because of the credit risk involved but customers can use debit cards for these payments without incurring cash advance charges.