High Court Reverses Ruling On Credit Card Rate Hikes

Law360, New York (January 24, 2011, 1:41 PM EST) -- The U.S. Supreme Court nixed a consumer class action against Chase Bank USA NA on Monday, ruling the bank was not required to notify credit-card holders before raising interest rates in response to late payments or defaults.

In reversing a decision by the U.S. Court of Appeals for the Ninth Circuit, the high court unanimously held that Chase did not violate the Truth in Lending Act and was not required to notify cardholders of the rate hike under a Federal Reserve Board regulation.

The plaintiffs had...
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