Hauk

I. Factual and Procedural Background

In June 2003, Hauk opened a Chase credit card account and received a Cardmember Agreement (“CMA”). After Hauk had maintained his Chase account for about sixteen months, Chase sent him a balance transfer offer (BTO) in October 2004. The BTO offered Hauk a promotional fixed annual per- centage rate (APR) of 4.99% for any balances he transferred to his Chase account. It also incorporated the terms of the CMA and indicated that Chase could impose an increased rate (“Non-Preferred APR”) in lieu of the promotional rate if Hauk made a late payment to Chase or any of his other credi- tors. During a telephone conversation with a Chase represen- tative on or about October 11, 2004, Hauk transferred a $10,200 balance with another creditor to his Chase account, thereby accepting the BTO.

On Hauk’s October statement, Chase indicated the promo- tional APR of 4.99% for transferred balances. When Hauk received his November statement, however, he learned that 1 Chase contends it was erroneously sued as JP Morgan Chase Bank

USA.

826 HAUK v. JP MORGAN CHASE BANK Chase had applied a Non-Preferred APR of 28.74% to his account, resulting in a…