On Tuesday, a Chase credit card customer filed a lawsuit against the company for unexpectedly charging his cryptocurrency investments as high-interest cash advances rather than normal purchases, a possible violation of the federal Truth in Lending Act.
On April 10, 2018, Brady Tucker of Idaho filed a complaint – for which he is seeking class action status – in Manhattan federal court against Chase Bank of JPMorgan Chase & Co. Tucker alleges that in late January 2018, the bank suddenly started classifying his cryptocurrency purchases (made on digital asset exchanges) as cash advances rather than regular purchases.
The complaint explains the situation:
"Chase began treating all its customers' crypto purchases not as ordinary credit card 'Purchases' — as Chase had for years — but instead as 'Cash Advances' from Chase to the credit cardholder. When Chase implemented this change in late January 2018, Chase did so in total silence. Chase provided no prior notice to its cardholders that their crypto 'Purchases' would be treated as 'Cash Advances' on a going forward basis. All of this occurred unbeknownst to Chase's cardholders."
The problem, Tucker argues, is that Chase made this policy change without notifying customers and refused to provide refunds. The complaint continues:
"Had Chase notified its cardholders, as required by law, in advance of making these changes to their credit card terms, Plaintiff and the Class would not have incurred millions of dollars in cash advance fees and interest charges by taking out personal cash loans from Chase without their knowledge or consent."
According to the filing, Tucker incurred "at least $143.30 in cash advance fees" and at least "$20.61 in cash advance interest charges (as of February 20, 2018)." Although Tucker contacted Chase's customer service line to voice his concerns, the company would not reverse
