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Chase Credit Card Debt Class Action Settlement Reached
Chase has reached a settlement with some of its former credit card holders. This applies to people who have had Chase credit cards in the past and have filed for Chapter 7 bankruptcy.
This lawsuit alleges that Chase failed to update its credit furnishing for credit card accounts sold to Debt Buyers where the accountholder’s debts were discharged in Chapter 7 bankruptcy after they were sold. As a result, the entry on the accountholder’s credit report associated with the account continued to reflect that the debts were sold, charged off, and $0 balance, and did not indicate that the debts were included or discharged in bankruptcy.
The reason why this is important is that these practices have harmed affected consumers by adversely impacting their ability to get credit. Plaintiff also alleges that Chase’s credit furnishing practices have pressured some consumers into paying those discharged debts because they feared that not doing so would negatively impact the perception of their creditworthiness to prospective creditors and employers.
Settlement Class includes all individuals (i) who maintained a Credit Card Account with CBUSA; (ii) whose account CBUSA charged off and then sold to a Debt Buyer on or after January 1, 2008, and (iii) who post-sale sought and obtained a discharge of the debt as a result of his/her bankruptcy under Chapter 7 of the Bankruptcy Code, through and including the date of the Bankruptcy Court’s preliminary approval of the Settlement.
What to Do?
If you think you were affected by this, then you should file a claim here before 07/18/18. You can get anywhere between $10 and $125 for the fact that your credit report was not updated to reflect the fact that the sold CBUSA debt associated with your CBUSA credit card was discharged in Chapter 7 bankruptcy.
If you made a payment on your sold CBUSA credit card account after you received a Chapter 7 bankruptcy discharge, you may be entitled to a full refund of that amount. If CBUSA’s records show that you made a payment(s) to CBUSA after debt was sold, you will receive an automatic payment in the amount of the payment(s) you made to CBUSA. You do not need to do anything to claim this payment. A check will be sent to you automatically.
CBUSA will make payments to CBUSA Post-Discharge Payors, to other qualifying Settlement Class Members for timely, valid, and approved claims, and to the Class Representative for an incentive award as ordered by the District Court in an amount not to exceed $11,500,000.
CBUSA has also asked the three primary credit reporting agencies (TransUnion, Equifax, and Experian) to delete or suppress the tradelines associated with the Class Members’ CBUSA credit card accounts at issue.
This settlement will not affect many people. But if you’re eligible for a settlement payout then this could be a big check to reimburse you for amounts that you shouldn’t have paid. You can also get between $10 and $125 for the impact it had on your credit.
Miles to Memories has partnered with CardRatings for our coverage of credit card products. Miles to Memories and CardRatings may receive a commission from card issuers.