Malaika Williams v. JPMorgan Chase Bank, N.A.

CourtDistrict Court, E.D. Pennsylvania
DecidedMay 26, 2026
Docket2:26-cv-01367
StatusUnknown

This text of Malaika Williams v. JPMorgan Chase Bank, N.A. (Malaika Williams v. JPMorgan Chase Bank, N.A.) is published on Counsel Stack Legal Research, covering District Court, E.D. Pennsylvania primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
Malaika Williams v. JPMorgan Chase Bank, N.A., (E.D. Pa. 2026).

Opinion

IN THE UNITED STATES DISTRICT COURT FOR THE EASTERN DISTRICT OF PENNSYLVANIA MALAIKA WILLIAMS, Plaintiff, CIVIL ACTION v. NO. 26-1367 JPMORGAN CHASE BANK, N.A., Defendant. Pappert, J. May 26, 2026 MEMORANDUM Pro se plaintiff Malaika Williams sued JPMorgan Chase Bank, N.A. for reducing the credit limit on her account. She amended once as a matter of course and, after Chase moved to dismiss all claims, filed a second amended complaint. The Court struck that filing for not complying with Federal Rule of Civil Procedure 15(a), and Williams moved for leave to file a proposed second amended complaint. In that pleading, she alleges numerous violations of the Equal Credit Opportunity Act (Count I), the Credit CARD Act and the Truth in Lending Act (Count II), the Fair Credit Reporting Act (Count III), the Pennsylvania Unfair Trade Practices and Consumer Protection Law (Count IV), the Fair Credit Extension Uniformity Act (Count V), fraudulent and negligent misrepresentation (Count VI), unjust enrichment (Count VII),

and negligent infliction of emotional distress (Count VIII). Chase opposed the motion, arguing amendment would be futile because Williams fails to state claims upon which relief could be granted. The Court grants Williams’s motion, denies the motion to dismiss as moot, and construes Chase’s response in opposition as a renewed motion to dismiss, which is granted. Count I is dismissed without prejudice as to the claims under 15 U.S.C. § 1691(a) but with prejudice as to the claim under 15 U.S.C. § 1691(d)(1) and Regulation B. Counts II, IV, V, VI and VII are dismissed without prejudice, and Counts III and VIII are dismissed with prejudice.

I In November of 2023, Malaika Williams, a black woman, opened a Chase Freedom Unlimited credit card account. (SAC ¶ 8, Dkt. No. 19-1.) Chase issued her an initial credit limit of $4,800, which increased to $7,800 in mid-2024. (Id. ¶ 13.) Williams contends she used her account responsibly and made all required payments on time. (Id. ¶ 12.) She purportedly relied on her credit limit in structuring her monthly expenses, earning cash back rewards, maintaining her “credit utilization ratio at levels consistent with a strong credit profile,” and forgoing applications for competing credit products. (Id. ¶ 14.)

On September 24, 2025, Chase sent Williams a letter through an online banking portal, stating it had “reduced the credit line on [her] account to $4,600.” (SAC ¶ 18); (Sep. 24, 2025 Letter from Chase to Williams at 2, Mot. Ex. A, Dkt. No. 19-2.) Chase explained the balances she owed on revolving accounts were “too high,” and the balances on her accounts were “too high compared to credit limits.” (Sep. 24, 2025 Letter from Chase to Williams at 2.) The letter included details about the credit bureau and credit score used to make the decision, (id.), as well as an “EQUAL CREDIT OPPORTUNITY ACT NOTICE”: The federal Equal Credit Opportunity Act prohibits creditors from discriminating against credit applicants on the basis of race, color, religion, national origin, sex, marital status, age (provided the applicant has the capacity to enter into a binding contract); because all or part of the applicant’s income derives from any public assistance program; or because the applicant has in good faith exercised any right under the Consumer Credit Protection Act. The federal agency that administers compliance with this law concerning this creditor is the Consumer Financial Protection Bureau, 1700 G Street NW, Washington, DC 20552.

(Id. at 4.) Chase also instructed Williams to provide any new information to help reevaluate the decision, (id. at 2), which she never did. By decreasing her credit limit, Chase purportedly increased her credit utilization ratio, caused other issuers to reduce her credit limits, limited her ability to earn unlimited cash back rewards and other benefits, and inflicted “physical and emotional harm,” such as depression, anxiety, insomnia, headaches, nausea, and loss of concentration. (SAC ¶ 25.) She accuses Chase of violating various federal and state laws and tries to support her claims with “CFPB official research” regarding credit line decreases for consumers of color, similar cases against Chase, and legal scholarship on discrimination in banking. See generally (Evid. of Pattern of Discrimination, Mot. Ex. B, Dkt. No. 19-2). II Federal Rule of Civil Procedure 15(a) provides that “the court should freely give leave [to amend] when justice so requires.” Fed. R. Civ. P. 15(a)(2). District courts generally do so where the plaintiff can cure the defects in the pleadings and state a valid legal claim. 3 Moore’s Federal Practice § 15.15[3] (2026). Refusing leave to amend is inappropriate “unless it is beyond a doubt that there are no facts to support relief.” Id. That standard “is especially true for pro se plaintiffs, for whom the court should grant leave at least once if there is any indication of a valid claim.” Id. Williams is a pro se plaintiff, and it’s not clear, beyond a doubt, that no facts could support relief, see infra Parts IV–X. The purpose of pleading “is to facilitate a proper decision on the merits,” see Kiser v. Gen. Elec. Corp., 831 F.2d 423, 427 (3d Cir. 1987) (citation omitted), and the Court has yet to address the merits of her claims. The

proper vehicle for assessing Chase’s arguments about futility is a motion to dismiss under Rule 12(b)(6), not a motion for leave to amend under Rule 15(a). See City of Cambridge Ret. Sys. v. Altisource Asset Mgmt. Corp, 908 F.3d 872, 879 (3d Cir. 2018). Otherwise, the First Amended Complaint—which Williams no longer stands by—would be the operative pleading, and the Court would have to revisit claims she now seeks to amend. III To avoid dismissal under Rule 12(b)(6), a complaint must “state a claim to relief that is plausible on its face.” Bell Atl. Corp. v. Twombly, 550 U.S. 544, 570 (2007). A

claim is facially plausible if the plaintiff pleads facts from which the Court can infer “that the defendant is liable for the misconduct alleged.” Ashcroft v. Iqbal, 556 U.S. 662, 678 (2009) (citing Twombly, 550 U.S. at 556). Although this “plausibility standard is not akin to a ‘probability requirement,’” it demands “more than a sheer possibility that a defendant has acted unlawfully.” Id. (quoting Twombly, 550 U.S. at 556). Assessing plausibility under Twombly and Iqbal is a three-step process. See Connelly v. Lane Const. Corp., 809 F.3d 780, 787 (3d Cir. 2016). Step one is to “take note of the elements the plaintiff must plead to state a claim.” Id. (alterations omitted) (quoting Iqbal, 556 U.S. at 675). Next, the Court should identify allegations that, “because they are no more than conclusions, are not entitled to the assumption of truth.” Id. (quoting Iqbal, 556 U.S. at 679). Finally, for all “well-pleaded factual allegations, [the] court should assume their veracity and then determine whether they plausibly give rise to an entitlement to relief.” Id. (alteration in original) (quoting Iqbal, 556 U.S. at 679). If the well-pleaded facts do not nudge the “claims across the

line from conceivable to plausible,” the Court must dismiss the complaint.1 Twombly, 550 U.S. at 570.

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Bluebook (online)
Malaika Williams v. JPMorgan Chase Bank, N.A., Counsel Stack Legal Research, https://law.counselstack.com/opinion/malaika-williams-v-jpmorgan-chase-bank-na-paed-2026.