Chase Bank Defeats Class Suit Over Credit Card Rates in New York

A class of Chase Bank customers who said they were charged usurious rates on unsecured cards failed to convince a federal judge in New York the bank should be held to state interest limits.

Chase Issuance Trust contracted with JP Morgan Chase Bank to service the challenged credit card loans, the class said. JP Morgan Chase retained ownership of the loans, and charged class members interest rates above 16%, which violated New York’s civil usury limit, the suit alleged.

But the class’ state law claims were preempted by the National Banking Act, Judge Lawrence J. Vilardo wrote Monday for the ...