Baptiste v. JPMorgan Chase Bank
In 2012, New Economy Project, along with co-counsel Emery Celli Brinckerhoff & Abady LLP, filed a federal lawsuit against JPMorgan Chase Bank on behalf of two low-income New Yorkers, Subrina Baptiste and Ivy Brodsky, after Chase refused their repeated requests to stop electronic payments from their accounts to internet payday lenders, in violation of federal law, and then charged the women huge overdraft fees. By doing so, Chase effectively facilitated the payday lenders’ illegal activities, causing serious harm to the two women.
The plaintiffs reached a settlement with Chase in 2013, after it committed to make significant changes in its processing of electronic payments, particularly on usurious payday loans. The case garnered national attention when The New York Times featured it in a front-page lead article, followed by a series of other prominent news stories and editorials that highlighted the bank’s abusive practices.