Posts Tagged ‘service charges’

Chase sued: changed terms on fixed rate loans

February 7, 2009

According to the plaintiff who filed a class action complaint in Hawaii federal court, Chase Bank offered him a fixed rate on his loan which he accepted.  The plaintiff claims that  the language of the offer gives the “impression” that there will be no other fees associated with the loan for its duration.  However, in January 2009, the bank started charging the plaintiff a $10 service fee that he says violates the terms of the agreement. 

My take on this is that the law doesn’t care about “impressions.”  If the offer didn’t expressly say that service fees couldn’t be charged on the loan, then legally they could be.   Not nice but very typical of the industry.

Complaint courtesy Courthousenews