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Capital One/Discover merger implications
Wall Street Journal reporter Annamaria Andriotis joins LiveNOW's Andrew Craft to discuss the Capital One/Discover merger.
LOS ANGELES - Customers of JPMorgan Chase are suing the nation's largest bank over unfairly charging fees when they unwittingly deposited checks that bounced, according to a lawsuit obtained by Reuters.
The class action suit filed on Tuesday night involved five customers who said Chase charged them $12 "deposited item returned fees" from their accounts after the checks they attempted to deposit were returned unpaid.
The customers say the fees are "junk fees" and the actions by the bank are "predatory."
"By charging these deposited item return fees, Chase unfairly targeted its customers with financial penalties for faulty checks the customers had no hand in issuing," the complaint said. "They did nothing wrong, yet were penalized."
Chase did not immediately respond for comment.
READ MORE: Capital One becomes first large bank to drop all overdraft fees
What are junk fees
The lawsuit follows a move from President Joe Biden who made efforts to stop banks from similar fees.
In 2022, the Biden administration pushed for a crackdown on so-called junk fees that banks and other companies charge their customers.
Prior to the pandemic, banks collectively charged their customers roughly $15 billion in overdraft and bounced check fees, according to a bureau estimate. The bureau estimates that its new enforcement push on junk fees will save Americans roughly $3 billion in fees annually.
The Associated Press contributed to this story.