JP Morgan Chase, through subsidiaries, allegedly offered consumers a fixed annual percentage rate credit card loan, but then subsequently unilaterally modified the terms of the credit card loan to charge a $10 monthly service fee and finance charge.

This is an ongoing investigation and pending consumer class action against Chase Bank USA and JPMorgan Chase & Co. (hereinafter "JP Morgan Chase") in which it is alleged that JP Morgan Chase offered to consumers fixed rate credit cards without an application fee and a fixed annual percentage fee for the life of the loan, yet JP Morgan Chase unlawfully thereafter started charging a $10 per month monthly service fee or finance charge.

The class action lawsuit alleges that JP Morgan Chase offered to consumers a promotional rate offer on its credit cards. The class action lawsuit alleges that the Chase promotion was akin to fixed rate loan without an application fee and with a fixed annual percentage rate for the life of the loan.

The class action lawsuit further alleges that JPMorgan Chase failed to fully and prominently disclose in the promotional materials that it was reserving the right to unilaterally change the terms of the loan, including the right to assess a monthly service fee of finance charge that would have the effect of increasing the annual percentage rate of the loan.

In January, 2009, JPMorgan Chase began charging a $10 monthly service fee and finance charge. The class action lawsuit alleges that such a charge violates Hawaii's Unfair and Deceptive Practices Statute.