Chase faces lawsuit for high default fees
Jun 17, 2013, 8:41 AM | Updated: Mar 4, 2016, 5:52 am
JPMorgan Chase faces a lawsuit that alleges the bank imposed overly high or unnecessary fees on delinquent borrowers.
The banking giant tried to get the case dismissed, arguing to the courts that the claims were unjust, but a federal judge ruled the lawsuit should proceed.
Borrowers are accusing the bank of “imposing excessive or unnecessary fees to inflate profit, including on services performed by third party vendors, cheating thousands of already-strained borrowers out of millions of dollars,” Reuters reported.
Among the fees in question range from $95 to $125 for “broker’s price opinions.” The plaintiffs, who reside in the Northwest, Tennessee and California claim that the BPOs cost $30 to produce and that according to Fannie Mae guidelines they should not cost more than $80.
Similar lawsuits over mortgage fees charged to delinquent borrowers are pending against Wells Fargo and Citigroup.
