JPMorgan Chase agreed to pay $100 million to settle a lawsuit filed by customers who said that the nation's largest bank increased monthly minimum payments due on credit cards to generate more fees.
The settlement, filed in court on Monday, needs to be approved by a judge. It potentially ends a federal lawsuit filed three years ago in San Francisco. The lawsuit accuses JPMorgan of improperly increasing cardholders' minimum payments due to 5 percent of balances, from 2 percent, in 2008 and 2009.
Credit card customers argued that the bank increased payments on borrowers who could not afford to pay more, ultimately creating more income from late fees.
JPMorgan argued in its court filings that the increase in monthly payments was reasonable and sensible.
