BloombergNEW YORK (Bloomberg) — JPMorgan Chase & Co. was sued for charging “sky-high” interest rates and fees to customers who used their credit cards to buy cryptocurrencies such as bitcoin.
Brady Tucker, a Chase credit-card customer in Idaho, claims the bank in January began treating his cryptocurrency buys as cash advances instead of purchases, and charging him interest rates of as much as 30 percent a year and additional fees. The suit comes as an increasing number of credit-card issuers are taking measures to limit or block cryptocurrency purchases.
Tucker’s suit cites comments by JPMorgan Chief Executive Officer Jamie Dimon last year calling bitcoin a “fraud” and threatening to fire any trader who bought or sold them for being “stupid.” Dimon later said he regretted those comments and wished he hadn’t dismissed the technology so broadly.
“It appears that in addition to firing its ‘stupid’ employees, Chase elected to start fining its ‘stupid’ customers: unilaterally,” Tucker said in his lawsuit.
Tucker is seeking class-action status for the suit filed Tuesday in federal court in Manhattan. He seeks a refund of all related fees plus $1 million in damages. Representatives of JPMorgan Chase didn’t immediately respond to a call seeking comment.
JPMorgan, Bank of America Corp. and Citigroup Inc. this year began to decline cryptocurrency purchases, fearing borrowers might not pay and that cardholders might dispute charges if they receive tokens that turn out to be fraudulent or illegal.Speech