A kind reader and tipster (send in your tips here) let me know that the class action suit against Chase bank for raising minimum monthly payments is proceeding to paying out soon.
The suit was brought in 2009 on behalf of consumers that had engaged in balance transfers to Chase Bank under the impression the minimum payment on the credit would be 2% of the outstanding balance on a monthly basis. Chase later changed the terms of the loans so the minimum payment was 5% of the balance as a minimum monthly payment.
As the original suit says, “By way of example, someone carrying a $20,000 balance on a long term fixed rate loan will see her required minimum monthly payment increase from $400 to $1000.” – Source
According to the official website regarding this settlement, chaseminpaymentlawsuit.com, consumers covered by this class action suit will receive the following settlement payment.
Class Members will be sent a settlement check by the Settlement Administrator in the amount of their individual share of the Settlement Fund available for distribution. Each Class Member’s share will be 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 will still receive the $25.00 base payment). – Source
As of now the payment distribution date has not been set but it should be the next step in this action.