The Supreme Court said on Monday it would hear JPMorgan Chase & Co's appeal over a lawsuit that says the bank violated federal law by failing to notify credit card holders before raising interest rates due to late payments or defaults.
The lead plaintiff in the class-action lawsuit, James McCoy, had accused Chase Manhattan Bank of violating the Truth in Lending Act by increasing interest rates retroactively to the beginning of his payment cycle after his account was closed after a late payment to Chase or another creditor.
In its cardmember agreement, Chase said it disclosed the conditions that McCoy had to comply with to remain eligible for the lower interest rate, as well as the maximum interest rate that could apply if he violated those terms.
(Reporting by James Vicini. Editing by Gerald E. McCormick)