(CN) The Supreme Court said Monday it will hear JPMorgan Chase & Co.’s appeal of a class action accusing it of raising customers’ credit card interest rates without telling them.
A federal judge in California had dismissed James McCoy’s 2006 lawsuit, which accused Chase Manhattan Bank of violating the Truth in Lending Act when it retroactively raised interest rates on his credit card after his account was closed due to a late payment.
But a federal appeals court reinstated the case in 2009, finding that McCoy can continue with his lawsuit if Chase failed to tell him of the rate increase because of a default, or if his contract did not specify the terms for the increase.
Chase maintained that it told McCoy of its policies.
The high court will hear arguments when its next term begins in October.