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March 13, 2020

JPMorgan Chase settles credit card crypto purchases lawsuit in US

JPMorgan Chase has reached an out of court settlement with customers who filed a class-action lawsuit against it in 2018 over fees for cryptocurrency buys.

Brady Tucker filed a lawsuit against the banking giant in federal court in Manhattan alleging that the bank charged high interest rates and fees for buying cryptocurrency using credit cards.

It was alleged that JPMorgan considered the cryptocurrency purchases as cash advances and levied higher charges than on the credit cards.

The plaintiff accused the bank of violating the Truth in Lending Act for not intimating customers that crypto purchases were being treated as cash advances.

The bank also refused to repay the charges to affected customers, the complaint alleged.

The plaintiff, who represented a class of potentially thousands of cardholders of the bank, claimed a complete refund of all wrongly charged fees apart from $1m in statutory damages.

According to an order signed by Judge Katherine Polk Failla, the proceedings have now been discontinued.

The specific details of the agreement have not been made public.

Counsels for both the groups refused to offer any comments over the settlement reached.

JPMorgan Chase banned its customers from buying Bitcoin and other cryptocurrencies using its credit cards soon after the lawsuit was filed in 2018.

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