Chase Credit Card Debt Class Action Settlement

What’s The Chase Credit Card Debt Settlement About?

This lawsuit alleges that Defendant 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 (or “tradeline”) 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.

Based on these allegations, Plaintiff claims that Defendant’s credit furnishing practices have harmed consumers by adversely affecting their ability to get credit.  Plaintiff also alleges that Defendant’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.

Chase Credit Card Debt Class Action Settlement

Who’s Eligible?

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 Can You Get From This Settlement?

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 on your credit card account after it was sold to a Debt Buyer and after you received a Chapter 7 bankruptcy discharge, and you do not exclude yourself from this Settlement, 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

The Settlement Agreement provides that CBUSA will do the following to resolve the case:

  • 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 will pay for claims administration costs, including, but not limited to, notice costs and escrow and banking fees and costs;
  •  CBUSA will make payments to Class Counsel for attorney’s fees and litigation costs as ordered by the District Court in an amount not to exceed $3,750,000, as further discussed below; and
  • 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.  If a Class Member identifies that CBUSA’s tradeline for the credit card account at issue continues to appear on his or her credit report, and provides notice to CBUSA’s counsel that the tradeline has not yet been deleted or suppressed, CBUSA will make one final request that the credit reporting agencies delete or suppress the tradeline.  If a Class Member submits a request for reinstatement of the tradeline associated with the CBUSA credit card account at issue, CBUSA will request that the credit reporting agencies reinstate it.  The Class Member’s request must be made in writing, signed, mailed to CBUSA’s counsel, and postmarked by July 18, 2018.

Settlement Details


 

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