Cagey Consumer

First USA Settles lawsuit

Firm allegedly switched credit card holders to higher interest rate

September 4, 1997: 8:30 a.m. ET NEW YORK (CNNfn)
First USA reportedly is settling a class-action lawsuit that alleged the company surreptitiously switched credit card holders to a higher interest rate, a newspaper reported Thursday.

The company apparently will pay as much as $1 million to up to 8 million card holders, the Wall Street Journal said.

The lawsuit contends that the company promised a lower rate and then prematurely switched users to a higher rate, the newspaper said.

Under the proposed settlement, First USA won't admit wrongdoing, the Journal said. Banc One bought First USA in January.

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