Chase Settles for $22 Million

Bloomberg News reports that the Chase Manhattan Corporation will pay at least $22 million to settle consumer lawsuits regarding the bank's billing practices. The agreement was reached in the federal court in Los Angeles. The settlement followed a number of allegations that credit cardholders were charged extra interest and late fees even when they had paid their bills on time. The suits alleged that Chase did not post any payments received after 9:00 a.m. on their due date. As a result, cardholders paid more in interest and fees for late payments if their payments arrived after that time on the due date. The actual amount of the settlement payments will depend on the extent to which cardholders file their claims.