Credit Card Companies and Banks Allegedly Taking Advantage of Their Customers with Unlawful Minimum Interest Charges

Credit card companies and banks such as TD Bank have allegedly been implementing unlawful interest charges on customers who use their credit cards by imposing additional minimum interest charges on top of standard interest charges every billing cycle when interest is accrued. Certain credit card companies and banks have already seen pushback from consumers about unnecessary fees and minimum interest charges while using their card. Now, Illinois residents and active-duty service members who are credit card holders are allegedly charged minimum interest charges every billing cycle by TD Bank, other banks, or their credit card company since April 2021.

Certain Credit Card Companies and Banks like TD Bank May Charge Unlawful Interest Rates to Illinois Consumers

Credit card companies and some banks have allegedly been imposing a minimum interest charge of $1.00 for any billing period in which an interest charge is incurred. However, on March 23, 2021, the Illinois Predatory Loan Prevention Act, 815, ILCS 123, went into effect. This act prohibits the making of any consumer loan in Illinois over 36% APR. Many credit cards offered by credit card companies or banks like TD Bank in the Illinois area have a $1.00 minimum charge that may exceed 36% APR. Any violation is also considered a violation of the Illinois Consumer Fraud Act, 815 ILCS 505. Additionally, any loan made in violation of the PLPA “is null and void and no person or entity shall have any right to collect, attempt to collect, receive, or retain any principal, fee, interest, or charges related to the loan.” Consumers with a credit card who have been charged the $1.00 minimum interest charge from April 2021 could be eligible for compensation.

Are you an Illinois resident or active-duty service member with a credit card who has been charged this minimum interest charge in your billing cycles by TD Bank, another bank, or a credit card company at any point since April 2021? Contact us today for a free consultation!

Frequently Asked Questions

What should I do if I am being charged an unlawful minimum interest charge on my credit card?

If you believe you are being charged by TD bank an unlawful interest rate on your credit card, there are several steps you may take to resolve the issue. First, you should review your credit card agreement and its terms and conditions that may specify the minimum interest rate that can be charged by TD bank, another bank, or a credit card company. Second, seek legal advice. McCune Law Group’s Financial Services attorneys are experienced in financial class actions and can represent you in your case. Our team can provide legal advice and guide you in further action such as taking action against your credit card issuer.

Predatory lending is a practice that involves making a loan that the borrower does not need, does not want, or cannot afford. Predatory lending typically involves deception and fraud, manipulation of a borrower through aggressive sales tactics, and taking unfair advantage of a borrower’s lack of understanding about loan terms and conditions.

Look out for all the charges and excessive fees made by TD bank that you will have to pay as a borrower. Up-front fees do not always come out of pocket but can be included as part of the loan principal.

How to Start a Case

If you are an Illinois resident or active-duty service member and have been charged a $1 minimum interest charge on your credit card by your credit card company or any bank such as TD Bank at any point since April 2021, you may have a case. It is important you contact our team of Financial Services attorneys so we can evaluate your case. Here is what you can expect:

  • Fill out our contact form with your information.
  • Set up your free consultation.
  • Meet with our Financial Services team.
  • Discuss your potential case.
  • Discuss your next steps.

For a free consultation and review of your potential case, contact us by calling (909) 345-8110 or by completing the form today!

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