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, reports Bloomberg News.
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.
