Access To Justice

Got a credit card? Then you’ll want to keep tabs on a class-action lawsuit scheduled to go before the U.S. Supreme Court this fall.

Reuters reports that the court will hear an appeal by JP Morgan Chase & Co. over whether the bank’s failure to notify its credit card holders before pushing up interest rates for defaults or late payments violated the Truth in Lending Act. The plaintiff in the suit alleges the bank violated the federal law when it retroactively raised the interest rate on his credit card to the start of a payment cycle after his account was closed due to a late payment, according to Reuters. Chase claims its card agreement discloses that it could raise rates under certain conditions.

The suit was initially dismissed by a federal judge in California but was reinstated by a federal appeals court last year, Reuters reports.