Chase Bank settles credit card payment protection product class action

Posted on: April 19th, 2011 by Steve Larson
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A class action settlement has been reached in a class action lawsuit against JPMorgan Chase & Co. and Chase Bank in the United States District Court for the Southern District of Florida (entitled Kardonick, et. al. v. JPMorgan Chase & Co. et al., Class Action Case No. 10-cv-23235).  The complaint alleged that Chase engaged in breaches of contract, breaches of implied covenant, and violations of the unfair and deceptive acts and practices statutes of various states, in connection with marketing and administering Chase Payment Protection Products.

Chase Payment Protection Product settlement class members include the following persons:

All Chase credit card holders and Chase-issued private label cards (such as Toys “R” Us) who were enrolled in or billed for a Payment Protection Product at any time between September 1, 2004 and November 11, 2010.

A “Payment Protection Product” is any product offered by Chase (whether directly or indirectly through co-brand, private label, or other partners) under which credit card debt may be cancelled or suspended under certain circumstances such as death, disability, hospitalization, or unemployment.  Examples are Chase Payment Protector and Chase Payment Advantage.

The Chase Payment Protection Products class action lawsuit settlement provides that Chase has agreed to create a Settlement Fund of twenty million dollars ($20,000,000), plus additional consideration in the form of credit to the unpaid balances of certain Charged-Off Class Members, to fund the payment of claims as well as the costs of the litigation, the settlement, and an attorney fee award in an amount to be approved by the Court. Each class member who timely submits a valid claim form will reportedly receive a share of the settlement fund after reduction for administrative costs, attorney fees, and legal expenses as approved by the Court.

For more information on the Chase Payment Protection Products class action lawsuit settlement, including information on how to participate in, object to or opt out of the settlement and the deadlines by which to do so, visit the Chase Payment Protection Products class action Settlement website:

www.kardonicksettlement.com