Class Action Says Chase Bank Passed Over Smaller Businesses When Approving PPP Loans
May 1, 2020
DENVER — JPMorgan Chase Bank has been hit with another class action accusing it of prioritizing its favored clients over smaller businesses when approving applications for Paycheck Protection Program loans under the Coronavirus Aid, Relief, and Economic Security (CARES) Act.
In an April 29 complaint filed in the U.S. District Court for the District of Colorado, Ladaga Ventures LLC — a cupcake decorating company — says only 6 percent of Chase’s 300,000 Business Banking customers that tried to apply for PPP loans were approved, while nearly 100 percent of the bank’s large, Commercial Banking clients were approved.
“Worse, Chase …
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