The U.S. Supreme Court has signaled interest in hearing arguments from a JPMorgan Chase & Co. unit in a fight over the notice credit card companies must give customers before imposing an interest rate increase.
The justices Monday asked the Obama administration to give its views of the dispute. A federal appeals court allowed a California lawsuit against Chase Bank USA by a consumer whose rates were raised after he went into default. Similar suits under the U.S. Truth-in-Lending Act have been filed in California against other banks.
JPMorgan Chase contends that its cardholder agreement permitted it to raise rates without additional notification after a default.
Similar issues have arisen in a number of lawsuits around the country. But the case will have a narrow impact because of new laws that explicitly require notification.
