SAN FRANCISCO (CN) - JPMorgan Chase Bank took money from customers' accounts to pay off debts they did not legally owe, and didn't tell them before or after it did it, a class action claims in Federal Court. Michelle Maltzahn claims Morgan Chase took more than $250 from her checking and savings accounts, and falsely described the seizures as a "debit" or "withdrawal to another account."
Maltzahn says she "received no notice of Chase's intent to seize these funds prior to these seizures and no notice after these funds were seized."
Maltzahn says Chase took the money to pay off a 4-year-old "stale" debt that under the California statute of limitations was no longer collectable.
"Chase's checking and savings account agreements are contracts of adhesion because they are offered on a take-it-or-leave-it basis," the complaint states. "[The bank] possesses bargaining strength and power far superior to that of plaintiff and other customers."
Chase is one of the nation's largest banks, with $2 trillion in assets and more than $165 billion in stockholders' equity. The class claims Chase violated the Consumer Legal Remedies Act and the Rosenthal Fair Debt Collection Practices Act. It seeks damages for conversion, breach of covenant and unfair competition.
The class is represented by James Sturdevant.
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