August 14, 2019- Kohn, Swift & Graf, P.C. is currently investigating banks nationwide for allegedly charging credit-card customers “surprise” fees when billing their cryptocurrency purchases as cash advances.
Banks Violate Truth in Lending over Cryptocurrency
Cryptocurrency is well recognized as a form of electronic cash and is accepted by many businesses for payment. Banks have argued that
their card-member agreements allow them to charge cash advance fees for “cash-like” transactions, which includes cryptocurrency. However, a U.S. District Judge recently ruled in favor of the consumers when she agreed that “cash” refers to government-issued currency and excludes cryptocurrency.
Several banks have been accused of breaching their credit-card agreements and violating the U.S. Truth in Lending Act (TILA), which requires credit-card issuers to clearly disclose the terms of credit. Not only do they charge credit-card customers “surprise” fees when billing their cryptocurrency purchases as cash advances, but they fail to give advance notice when changing the way they handle cryptocurrency purchases.
When banks bill credit-card purchases as cash advances, it leads to cash advance fees and higher interest rates.
If you or someone you know purchased a cryptocurrency and incurred cash advance fees or cash advance interest charges on a consumer credit card issued by any bank, please contact us. All consultations are free of charge. You may be eligible to be included in a Class Action Lawsuit.
Kohn, Swift & Graf is a national leader in class actions, including complex consumer litigation. With experienced consumer class action attorneys and a competent support staff, our firm strives to provide the highest quality of service to our clients. We treat each case with careful attention to ensure that consumers get the justice they deserve. KS&G is centrally located in Philadelphia, PA. We handle cases nationwide.