Lawsuit: Chase Bank Enticed Mortgage Holders with 'Trial Modifications'

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JPMorgan Chase & Co., which does business as Chase Bank, is on the receiving end of a proposed class action over alleged Fair Debt Collection Practices Act (FDCPA) violations. The plaintiff claims she and other consumers were “tricked” by the bank into believing they had received loan modifications for their primary mortgages. In truth, the case argues, proposed class members were surprised when the defendant, instead of honoring its purported modifications, demanded “huge” monthly payments.

“As a result, [the plaintiff] has fallen back into arrears and has suffered additional penalties and accrued additional interest she never would have owed had [Chase Bank] and the lender honored the modification the parties agreed to,” court papers allege.