Consumer complaint received 2025-04-13 00:00:00
Product: Credit card — General-purpose credit card or charge card
Issue: Fees or interest — Unexpected increase in interest rate
Company: JPMORGAN CHASE & CO.
State: CA

Complaint narrative:
Complaint to the Consumer Financial Protection Bureau ( CFPB ) Against : JPMorgan Chase Bank, N.A.Subject : Unlawful Interest Charges, Improper Account Closure, Securitization Violations, and Failure to Offset Under 15 U.S.C. 1666hSummary of Complaint : This formal complaint is submitted against JPMorgan Chase Bank , N.A . ( " Chase '' ) for unlawful and deceptive practices concerning the closure of both my personal and business credit card accounts without cause or explanation, continued interest accrual post-closure, improper collection efforts, and violations of federal law regarding account receivables and securitization processes.Allegations:1. Improper Interest Charges Post-Account Closure : Chase continued to charge interest on my personal and business credit card accounts after they were unilaterally closed by the bank, despite my lack of access to further credit and usage. This violates basic contract principles and constitutes an unjust enrichment.Supporting Case Law : See Koerner v. CitiMortgage, Inc., 912 F. Supp. 2d 1207 ( D. Minn. 2012 ), which states that continued interest accrual after contract termination, without legal authority or performance, can constitute breach of good faith and fair dealing.2. Failure to Apply Offsets from Sale of Receivables Violation of 15 U.S.C. 1666h : Chase sold the credit card account receivables to third parties for securitization into asset-backed securities ( ABS ), deriving funds from this sale. Under 15 U.S.C. 1666h, a creditor shall not take any action to collect any amount of a credit transaction which the consumer has disputed, particularly when that amount has been satisfied or offset by the sale or assignment of the receivable.Statute Reference:15 U.S. Code 1666h ( b ) If a creditor sells or assigns a debt that is the subject of a billing dispute to a third party ... the consumers rights under this section shall remain in effect.Legal Principle : Proceeds from the sale of consumer receivablesespecially when securitizedmust be used to satisfy or offset the original obligation.3. Double Recovery ( Double Dipping ) through Collection on Satisfied Debt : After selling the receivable, Chase continued to collect payments from me, effectively engaging in double recovery, which constitutes unjust enrichment, fraudulent concealment, and bad faith under UCC principles.Case Law : In re Smith, 737 F.2d 1549 ( 11th Cir. 1984 ) A creditor may not recover more than the amount owed, and attempts to collect on discharged or satisfied debts are unlawful.Restatement ( Third ) of Restitution and Unjust Enrichment 1 A person who has been unjustly enriched at the expense of another is subject to liability in restitution.4. Failure to Disclose True Creditor Relationship and Nature of the Promissory Note UCC Article 3 : My signature on the original credit application created a negotiable instrument under UCC 3-104, which Chase used to originate credit by depositing it into a Special Purpose Vehicle ( SPV ) trust or conduit entity. Chase failed to disclose that my signed instrument constituted the originating asset and that they acted solely as an intermediary, not a lender.UCC References : UCC 3-104 Definition of a negotiable instrument, which includes a signed, unconditional promise to pay.UCC 3-105 ( a ) The note becomes an instrument once issued and transferred into the commercial stream.UCC 9-203 and 9-309 Address attachment and perfection of security interests through the creation and assignment of financial instruments.5. Failure to Provide Truthful Disclosures Under TILA and FDCPA : Chase failed to disclose the true nature of the transaction, the securitization of the receivables, and the resulting third-party ownership, in violation of the Truth in Lending Act ( TILA ) and the Fair Debt Collection Practices Act ( FDCPA ). Statutes Involved:15 U.S.C. 1601 et seq. TILA requires full disclosure of the terms of credit and the parties involved.15 U.S.C . 1692e FDCPA prohibits deceptive or misleading representations in connection with the collection of any debt.

Company response to consumer: Closed with explanation