State Receives Millions in Settlement with Credit Card CompaniesApril 27, 2015, 3:24 PM HST · Updated April 27, 3:25 PM 0 Comments
The state attorney general’s office transferred $12.5 million into the Hawaiʻi’s general fund today, after successfully settling lawsuits with several national credit card providers that engaged in alleged unfair and deceptive business practices involving Hawaiʻi consumers.
In 2012, the state sued credit card providers Chase, Citi, Bank of America, Discover, HSBC, Capital One and Barclays in an effort to stop illegal practices involved in the marketing of credit card protection plans.
Today’s payment brings ends almost three years of litigation.
“Hawaiʻi consumers were typically solicited by their credit card company via phone or email with misleading sales pitches that omitted important information,” said Attorney General Doug Chin. “Many local citizens were convinced to sign up for a service they would not otherwise have purchased. In some instances, consumers complained they were enrolled without their consent. No one should have to pay for something they did not understand or agree to pay.”
Separate enforcement actions by the US government and private class actions resulted in direct restitution to Hawaiʻi consumers.
Former Deputy Attorney General and current Executive Director of the State Office of Consumer Protection Steve Levins handled the state’s case. The Mainland specialty firms of Golomb & Honik P.C. and Baron and Budd P.C., and the local firm of Cronin Fried Kekina Sekiya & Fairbanks provided additional support.