Thank you to everyone who contacted us regarding this matter. In light of some unfavorable court decisions, including the dismissal of the case detailed on this page, attorneys working with ClassAction.org have decided to close this investigation. If you have questions regarding your rights, please contact an attorney in your area. The information on this page exists for reference only and our open list of investigations can be found here.
At A Glance
This Alert Affects:
New York residents who accrued debt on a credit card issued by Bank of America.
What’s Going On?
Attorneys working with ClassAction.org are investigating whether the non-banks that purchased credit card debts from Bank of America are charging interest rates that exceed what’s allowed by New York state law. If so, they want to start a class action to help credit card holders get back the money they may have been overcharged in interest.
Attorneys working with ClassAction.org are investigating whether the entities that purchased credit card debts from Bank of America are charging interest rates that exceed what’s allowed by New York state law.
If you are carrying a debt on a credit card issued by Bank of America, you may be able to start a class action lawsuit and get some money back.
How Much Interest Is Too Much?
States have usury laws that protect consumers from being charged excessive interest rates. In New York, the interest rate limit is 16 percent per year. That means credit card holders in New York may have been overcharged if they’ve paid more than 16 percent interest on their debts.
What Started This Investigation?
Attorneys began their investigation after a class action lawsuit was filed against Chase Funding LLC and Chase Issuance Trust claiming the entities were “charging, collecting, receiving and attempting to collect” excessive interest from credit card debtors in New York.
The plaintiff behind the suit says he was carrying debt on various Chase-issued credit cards, including the Chase Sapphire, Chase Slate, and Chase Freedom cards. According to the case, the defendants have been overcharging the plaintiff by levying interest rates that range from 17.24 percent all the way up to 27.24 percent—which the suit says is in excess of New York’s 16-percent limit.
In light of these allegations, attorneys working with ClassAction.org began investigating whether purchasers of debts created on Bank of America credit cards may also be engaged in similar practices.
How Can a Lawsuit Help?
A class action lawsuit could help credit card holders get back the money they were overcharged in interest. It could also force companies that purchase credit card debts to stop overcharging their customers in the future.