Chase Credit Card Servicers Escape Usury Suit in New York

Law360 (September 22, 2020, 9:53 PM EDT) — A federal judge in Buffalo threw out a suit accusing two non-bank entities associated with JPMorgan Chase Bank of violating a New York law capping the interest rates banks can lend at, finding that both the National Banking Act and guidance from the Office of the Comptroller of the Currency supported dismissal of the matter.

In his Monday decision and order, U.S. District Judge Lawrence J. Vilardo sided with U.S. Magistrate Judge Jeremiah J. McCarthy, who in January issued a report and recommendation urging dismissal of plaintiff David Petersen’s suit against Chase Card Funding LLC and Chase Insurance Trust.

“Petersen’s state-law usury claims…

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