JPMORGAN CHASE & CO. and JPMORGAN CHASE BANK, N.A.
This action concerns Defendants’ alleged practice of improperly calculating the interest due on its EQUITYLINK home equity loan in violation of the express terms of the EQUITY LINK CREDIT LINE AGREEMENT. Pursuant to the terms of the EQUITYLINK CREDIT LINE AGREEMENT, the interest rate charged on any outstanding balances is subject to change on a monthly basis. Specifically, the Annual Percentage Rate (“APR”) from which interest is computed each month is to be determined by “subtracting 0.50% (the “Margin”) from the highest Prime Rate published in the column labeled “Money Rates” in the Wall Street Journal® (the “Index”) on the last Monday of the prior calendar month.” The Agreement further provides that “[a]ny increase or decrease in the Annual Percentage Rate will be effective on the first day of the billing cycle.”
Instead of calculating the monthly interest in this manner, the Complaint alleges that Defendants utilized the Index on the last Monday of two months prior. As a result, Plaintiff and the other borrowers pursuant to the EQUITYLINK CREDIT LINE AGREEMENT were charged the wrong interest rate since October 2007 when the Index began to decline. Plaintiff therefore brought a class action suit against Defendants on behalf of a class (“Class”) consisting of all persons who have had an outstanding balance pursuant to an EQUITYLINK CREDIT LINE AGREEMENT at any time since October 1, 2007 and paid interest on such balances as determined by Defendants. Plaintiff seeks damages for the overcharges to himself and the Class and an injunction to compel Defendants to cease further breaches of the Agreement.
