JPMorgan Wins Approval of $100 Million ‘Check Loan’ Pact

JPMorgan Chase & Co. (JPM) won preliminary court approval of a $100 million settlement with credit-card holders who sued the bank over claims it increased required minimum payments after promising a fixed interest rate.

U.S. District Judge Maxine Chesney in San Francisco granted tentative approval to the so-called check loan agreement yesterday. A final hearing is scheduled for Nov. 16.

The accord resolves a class action, or group lawsuit, filed on behalf of 1 million cardholders. The settlement fund represents about one-half of the up-front transaction fees cardholders paid on their credit card loans, lawyers for customers said court papers filed last month.

The case is In re Chase Bank USA NA “Check Loan” Contract Litigation, 09-2032, U.S. District Court, Northern District of California (San Francisco).

To contact the reporter on this story: Sophia Pearson in Philadelphia at spearson3@bloomberg.net

To contact the editor responsible for this story: Michael Hytha at mhytha@bloomberg.net

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