Chevy Chase Bank Settles Credit Card Suit

Published on:
12 September 2006 at 10:21 a.m. ET

Written by: Unknown Author –

http://www.insidearm.com/news/00007806-chevy-chase-bank-settles-credit-card-suit/

Washington, DC-area Chevy Chase Bank has settled a seven-year-old class-action lawsuit involving credit card offers that were marketed in 1996. The bank will pay $16.1 million in restitution and repair any damages to customers’ credit history that were affected by the offer, according to the Washington Post.

The case focused on an offer by the bank to extended MasterCard and Visa cards with a capped interest rate to consumers. The bank?s marketing materials said that the interest rate on the cards would be capped at 24%. But consumers began to complain when interest rates soared to 30%. Also, cardholders said that the bank charged late and over-limit fees that were not in the original credit agreement.

For this complete story, please visit http://www.washingtonpost.com/wp-dyn/content/article/2006/07/27/AR2006072701768.html.