Wells v. Chevy Chase Bank
Consumer class action against Chevy Chase Bank for monetary damages resulting from its breaches of a cardholder agreement that governed the terms and conditions of Visa and MasterCard credit card accounts with consumers.
After years of issuing credit card agreements that promised that cardholders’ annual percentage rates would never exceed 24 percent, Chevy Chase Bank purported to amend the agreement to remove the cap on annual percentage rates without complying with applicable law. It then raised cardholders’ interest rates above the promised 24 percent, applied the new interest rate to balances previously accrued, and instituted other improper charges.
The parties reached a settlement that was finally approved by the court. Under the agreement, Chevy Chase has paid a total of $16.1 million, and 250,000 class members received checks under the settlement. Chevy Chase has also taken action to repair damage to the class members’ credit records.
Lead cooperating counsel was John T. Ward of Ward Kershaw in Baltimore, Md. Thomas J. Minton of Goldman Minton in Baltimore, and Public Justice’s Paul Bland and Leslie Brueckner were co-counsel. Michael Malakoff of Malakoff, Doyle & Finberg in Pittsburgh, Pa., was cooperating counsel.
