JPMorgan Chase has had to pay a hefty fine $2.5 million to settle a crypto lawsuit filed against it in 2018. The biggest bank in the US was accused of charging an extra fee on crypto transactions by plaintiffs in Manhattan federal court. The lawsuit claimed that the bank considered their purchases as cash advances and didn’t let them buy cryptocurrency with credit cards.
Brady Tucker one of those involved in the lawsuit has claimed that JPMorgan charged him an extra cost $160 in the name of extra fees and interest rates and refused a refund when he complained about the same.
The bank believed that the complaint lacks substance as if he wanted to avoid the incurring cash advances, he could have opted to buy cryptocurrency or transactions with a debit card.
These issues started popping up frequently since 2018 when multiple banks along with JP Morgan chase put a halt to crypto buying via the means of a credit card.
After noticing $143.30 in fees and shocking $20.61 interest on crypto transactions carried out over a period of 5 days from 27th January to 2nd February, the plaintiff decided to lodge a complaint. However, the JPMorgan chase refused to entertain it or settle the charges. The lawsuit is finally settled after the bank paid $2.5 million to the plaintiffs.
JPMorgan Chase Not Alone
JPMorgan is not the only bank who has been guilty on grounds of charging an extra transactional fee. It has company in the form of Visa and MasterCard who have been accused of similar doings in the past. The primary reason these banks don’t encourage the buying of cryptocurrency through credit card is that if it is stolen it would be very hard to track it down if a crypto purchase is made through it. Secondly, if the buyers suffer from a loss they might not be able to pay off the borrowed money.
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