NAPERVILLE, Ill. – A class action lawsuit filed in an Illinois federal court Thursday alleges JPMorgan Chase Bank engaged in fraud to deny customers access to millions of dollars in their previously approved home equity lines of credit.
The case was filed on behalf of Pascal Majon, 30, of Zion, Ill., who claims Chase denied him access to his HELOC account due to a purported substantial decline in the value of his home. Majon’s attorney, Jay Edelson of KamberEdelson LLC, said his client’s home did not decline in value and alleged the bank intentionally used falsified home appraisals to freeze home equity lines of credit.
KamberEdelson is prosecuting other class actions against Washington Mutual, Wells Fargo and Citibank over similar HELOC practices. "These credit lines are safety nets. Knowingly suspending these accounts without justification and forcing customers to scramble to find alternatives – like high-interest credit cards – is just the kind of thinking that got banks into the trouble they’re in in the first place," Edelson said in a statement. "They act as if they're accountable to no one."