Hawaiʻi Reaches $11.3M Settlement Against Credit Card CompaniesAugust 4, 2014, 9:05 AM HST · Updated August 4, 11:02 AM 0 Comments
By Maui Now Staff
Attorney General David M. Louie announced today that the State of Hawaiʻi has reached settlements totaling approximately $11.3 million to resolve cases against four credit card companies.
The settlements against Bank of America, JP Morgan Chase, Discover Financial Services, and Citibank, are related to marketing practices for credit card payment protection plans, alleged by the attorney general to be deceptive under state law.
The State Attorney General’s office alleged that consumers were solicited by their credit card company via phone or email with what they called “misleading sales pitches” that allegedly omitted important information.
Allegations of improper conduct raised by the state against the companies included: enrolling consumers without their consent; providing misleading information about free trial periods; distorting plan benefits; billing for services not provided; unfairly charging credit card customers for interest and fees; or denying plan benefits to eligible customers.
“Federal enforcement actions involving the Consumer Financial Protection Bureau and the Office of the Comptroller of the Currency and private class action lawsuits have sought and are seeking restitution for Hawaiʻi consumers,” according to the State Attorney General.
State officials say proceeds from the settlements will go to the State General Fund.