Chase Bank Files Potential Class Action Lawsuit / by Dimitri Karhu

Chase Bank is facing a potential class action lawsuit over allegations it may be offering deceptive rewards programs that lure consumers into applying for and using a Chase credit card, only to later revoke the points earned by cancelling the account without reason — and without compensating these cardholder’s for their unredeemed Chase rewards points.

Chase Bank offers a number of rewards programs to its credit card customers, including Chase Ultimate Rewards, which allows cardholders to earn points for credit card purchases and redeem these points for travel, merchandise, gift cards, cash back, and more.

Whether it’s an all rewards credit card, cash back credit card, airline credit card, or hotel credit card, these rewards programs are used to entice consumers into signing up for and using the card. A class action lawsuit investigation has been launched into allegations that Chase misrepresents to consumers that the points or rebates they earn do not expire. In some cases, however, Chase Bank allegedly cancels cardholders’ accounts, even though they were not in default, and then does not compensate them for their unredeemed earned Chase rewards points. This practice is arguably deceptive, violates the cardholder agreements, and violates various state consumer protection laws.