JP Morgan gets sued for charging higher fees for cryptocurrency purchases
Shrikar Parashar Posted On April 11, 2018 Reuters reports that JP Morgan Chase and Co has been filed with a lawsuit in Manhattan federal court. The accusation is that it charged surprise fees when it stopped letting customers buy cryptocurrency with credit cards in late January and began treating the purchases as cash advances.
The lawsuit was filed on Tuesday and suggests that JP Morgan charged extra fees and higher interest rates on the cash advances than on credit cards. JP Morgan also refused to refund the customers when they filed a complaint.
After the fall in price earlier this year many other banks also had banned the use of credit cards for the purchase of cryptocurrencies.
The plaintiff named in the lawsuit is Mr.Brady Tucker, who was hit by charges ranging from $20.61 to $143.30 between Jan 27 to Feb 2. Possible thousands of other Chase customers were hit with the charges.
With no advance warning, Chase “stuck the plaintiff with the bill, after the fact of his transactions, and insisted that he pay it,” the lawsuit said. A lawyer for Tucker could not be reached for comment
JP Morgan is accused of violating the U.S Truth in Lending Act according to the lawsuit and asking for a million dollars for actual and statutory damages.
Zerohedge tweeted:
can’t make this up: JPMorgan busted for crypto fraud
JPMORGAN SUED OVER CASH ADVANCE FEES FOR CRYPTOCURRENCY BUYS— zerohedge (@zerohedge) April 11, 2018
JP Morgan had filed a Bitcoin-style payment system alternative back in 2013 but was rejected 175 times.
Jamie Dimon the CEO of JP Morgan had called Bitcoin a fraud back in September 2017. But later said expressed regret in calling it “fraud” and for “stupid people” in
Recently Amber Baldot who is very well known in the blockchain space and was leading the Quorum (which is JP Morgans own business-oriented blockchain adapted from Ethereum) team left JP Morgan for her own startup.
It is no new information that the banks such as JP Morgan are not particularly fond of cryptocurrencies as it directly threatens their business model. It is interesting to see such actions taken to suppress cryptocurrencies.
Source: Reuters
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