Class action accuses JPMorgan Chase, 6 other major banks, of fixing interest rates for decades

A class action lawsuit has been filed against JPMorgan Chase, Bank of America, Wells Fargo, Citibank, U.S. Bank, PNC Bank, and Truist Bank, alleging they colluded to fix interest rates on consumer and small-business loans for more than three decades. Plaintiffs Tracy Normandin and J. Allen Sensabaugh claim the banks conspired to stabilize rates by agreeing on the prime rates charged to their most creditworthy customers, which were then reported as the “WSJ Prime Rate” and used as a benchmark for trillions of dollars in variable-rate loans.

The lawsuit asserts that this collusion artificially inflated interest rates on loans like HELOCs and credit cards, eliminating competitive variation and maintaining a fixed spread of 300 basis points over the Federal Reserve’s target rate. The plaintiffs seek to recover damages for alleged overcharges, arguing the conspiracy began after The Wall Street Journal changed its prime rate reporting method in 1992, making coordination easier.

The complaint further alleges the Federal Reserve’s publishing of federal funds rate targets in 1994 facilitated the collusion. The plaintiffs contend that this practice has continued despite changes in the banking industry and constitutes a violation of federal antitrust laws, seeking treble damages as a result.

(Source：Class Action Lawsuits)