Canaccord Genuity Morning Coffee on JPMorgan (JPM): Insufficient Funds
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Price: $351.58 +0.01%
Rating Summary:
22 Buy, 25 Hold, 1 Sell
Rating Trend:
Down
Today's Overall Ratings:
Up: 8 | Down: 5 | New: 26
Rating Summary:
22 Buy, 25 Hold, 1 Sell
Rating Trend:
Down
Today's Overall Ratings:
Up: 8 | Down: 5 | New: 26
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Canaccord Genuity Morning Coffee on JPMorgan (NYSE: JPM): Insufficient funds.
JPMorgan won preliminary court approval of a $100-million settlement with credit-card holders who sued the bank over claims it increased required minimum payments after promising a fixed interest rate. The settlement resolves claims over JPM's decision in late 2008 and 2009 to boost minimum monthly payments for thousands of cardholders, including people who transferred balances from other lenders, to 5% of account balances from 2%. Cardholders alleged that JPM boosted minimum payments to force them to either accept higher rates to preserve a lower payment requirement, or to make more late payments that would trigger new fees or penalty interest rates. Last Thursday, U.S. District Judge Maxine Chesney in San Francisco granted preliminary approval to the settlement as fair, reasonable and adequate. A hearing at which she would consider final approval was scheduled for Nov. 16. The accord resolves a class action, or group lawsuit, filed on behalf of 1 million cardholders. Lawyers for the cardholders last month said the $100 million is 45% of the $220 million of up-front transaction fees that their clients paid for JPM's promotional loans. These lawyers will seek as much as $25 million of the settlement fund for legal fees, plus about $1.5 million to cover litigation costs, according to court papers.
JPMorgan won preliminary court approval of a $100-million settlement with credit-card holders who sued the bank over claims it increased required minimum payments after promising a fixed interest rate. The settlement resolves claims over JPM's decision in late 2008 and 2009 to boost minimum monthly payments for thousands of cardholders, including people who transferred balances from other lenders, to 5% of account balances from 2%. Cardholders alleged that JPM boosted minimum payments to force them to either accept higher rates to preserve a lower payment requirement, or to make more late payments that would trigger new fees or penalty interest rates. Last Thursday, U.S. District Judge Maxine Chesney in San Francisco granted preliminary approval to the settlement as fair, reasonable and adequate. A hearing at which she would consider final approval was scheduled for Nov. 16. The accord resolves a class action, or group lawsuit, filed on behalf of 1 million cardholders. Lawyers for the cardholders last month said the $100 million is 45% of the $220 million of up-front transaction fees that their clients paid for JPM's promotional loans. These lawyers will seek as much as $25 million of the settlement fund for legal fees, plus about $1.5 million to cover litigation costs, according to court papers.
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