WaMu, JPMorgan named in home equity credit suit

July 6, 2009
By MoneyAisle

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The Puget Sound Business Journal reports that a woman from California “has filed a lawsuit against JPMorgan Chase and Washington Mutual, alleging the two companies illegally reduced or froze customers’ home equity credit lines.”

The lawsuit claims that JPMorgan, which now owns WaMu, suspended the access of customers’ to “hundreds of millions of dollars worth of credit at a critical time.” According to letters sent to the customers, their access was restricted as a result of the “decline in value of the property securing those lines of credit.”