Important Settlement Update:
The Chase Check Loan Settlement received Final Approval from the Court on November 16, 2012. The Settlement is now effective. Per the terms of the Settlement and the Final Approval Order, Settlement Payments have been mailed to eligible Class Members. You can review a copy of the Minute Order Granting Final Approval and the Final Approval Order and Judgment on this website on the Court Documents page.
Some Chase credit cardholders accepted promotional loan offers whereby the loan was subject to a fixed interest rate (APR) until the loan balance was paid off in full. In November 2008 and June 2009, Chase sent some of these cardholders a “Change in Terms” notice, raising their minimum monthly payment from 2% to 5% of their outstanding account balance and, in some cases, applying a $10 monthly fee to their account. Plaintiffs brought the litigation alleging that the Change in Terms was improper. Chase contends that the Change in Terms was lawful and denies that its conduct was in any way illegal or improper. Plaintiffs and Chase have agreed to a settlement to resolve this lawsuit.
Who Is Included in the Class?
All persons or entities in the United States who entered into a loan agreement with Chase, whereby Chase promised a fixed APR until the loan balance was paid in full, and (i) whose minimum monthly payment was increased by Chase to 5% of the outstanding balance, or (ii) who were notified by Chase of a minimum payment increase and subsequently closed their account or agreed to an alternative change in terms offered by Chase.
How Will My Settlement Payment Be Determined?
The Settlement is now effective. Eligible Class Members have been mailed a Settlement Payment by the Settlement Administrator in the amount of their individual share of the Settlement Fund available for distribution. Each Class Member’s share is comprised of: (i) a $25.00 base payment; plus (ii) for most, but not all, Class Members, an additional payment intended to give the most compensation to those Class Members most affected by the Change in Terms, taking into account, among other things, the amount of the initial transaction fees paid for their fixed rate promotional loans (if there is no record of a transaction fee, an average transaction fee will be used), how much of the promotional balances were paid back before the Change in Terms occurred, how long the promotional loans were in the Class Member’s account before the Change in Terms, and whether and when the promotional balances were restored to their original terms after the Change in Terms were announced. A limited number of persons were notified of the change in terms but, for example, did not have balances at the time the change in terms took effect, and will not receive an additional payment (these Class Members still receive the $25.00 base payment).
What Are My Options?
You do not need to do anything in order to receive the benefits of the Settlement. The Settlement is now effective. Eligible Class Members have been mailed a Settlement Payment as described above and in the Settlement Notice received by mail.
The deadline to comment or object to the Settlement was October 5, 2012 (postmarked). You did not need to object or comment on the Settlement in order to receive a Settlement Payment.
Please refer to the Settlement Notice you received by mail for additional information regarding opt-out rights.
What Happens Next?
The United States District Court for the Northern District of California held a Fairness Hearing on November 16, 2012 and granted Final Approval of the Chase Check Loan Settlement. You can review a copy of the Minute Order Granting Final Approval and the Final Approval Order and Judgment on this website on the Court Documents page. Per the terms of the Settlement and the Final Approval Order, Settlement Payments have been mailed to eligible Class Members.
This website will be updated as additional information becomes available. Please check back periodically for important updates regarding the Settlement.