Customers of JPMorgan Chase have initiated legal action against the bank, alleging unfair practices regarding fees charged for depositing bounced checks.
In a proposed class action filed recently, five customers accused the largest U.S. bank of imposing $12 “deposited item returned fees” on their accounts when checks they attempted to deposit were returned unpaid, despite no wrongdoing on their part.
Various reasons can lead to check bouncing, such as insufficient funds in the writer’s account, stop payment orders, or errors on the checks.
Describing Chase’s fees as “junk fees,” the customers deemed them “unconscionable” and “predatory,” citing a bulletin from the U.S. Consumer Financial Protection Bureau in October 2022, which suggested that indiscriminate charging of such fees could be illegal.
They further alleged that Chase effectively acknowledged the unfairness of these fees by ceasing to disclose them in deposit agreements and fee schedules in March 2023.
The complaint asserted that Chase penalized its customers unjustly for issues they had no involvement in, stating, “They did nothing wrong, yet were penalized.”
Chase has not yet commented on the matter, as it is yet to review the complaint.
Lisa Considine, representing the customers, described these fees as part of a widespread and unjust industry practice that punishes consumers for circumstances beyond their control.
The legal action seeks damages of at least $5 million for Chase customers across the nation, alleging violations of consumer protection laws in New York, California, Illinois, and New Jersey. The case was filed in the federal court in White Plains, New York.
In October, the Biden administration called for stricter measures against hidden and unexpected fees across various sectors, including banking, citing the significant financial burden they impose on Americans annually.
The case is titled Maslowski et al v JPMorgan Chase Bank NA, and it is filed in the U.S. District Court for the Southern District of New York, under No. 24-01277.
