STORY FROM: MDL Mass Tort & Class Action Monitor
Class Action Accuses Chase Bank of Reshuffling PPP Loan Applications to Maximize Fees
April 21, 2020
LOS ANGELES — Two small businesses have filed a class action against JPMorgan Chase Bank in California federal court, accusing it of prioritizing Paycheck Protection Program requests seeking higher loan amounts because processing those applications generated larger loan origination fees.
In an April 19 complaint filed in the U.S. District Court for the Central District of California, the plaintiffs say the bank’s actions have left thousands of small businesses that were entitled to loans under the PPP with nothing.
The Paycheck Protection Program is a $350 billion loan program created by the Coronavirus Aid, Relief, and Economic Security (CARES) ...