State Gets $12 Million in Settlement with Credit Card Companies
On Monday, April 27, the state received $12.5 million in settlement funds following three years of litigation against several national credit card companies who allegedly practiced unfair and deceptive business tactics on Hawai‘i consumers.
The companies sued by the state included Chase, Citi, Bank of America, Discover, HSBC, Capital One, and Barclays.
The state filed lawsuits in 2012 against practices involving the marketing of credit card protection plans. According to Attorney General Doug Chin, Hawai‘i consumers were solicited with misleading sales pitches via phone or e-mail by the companies.
“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,” said Chin.
Hawai‘i consumers who were solicited received direct compensation through federal enforcement actions and private class actions.
The state’s case was handled by Steve Levins, executive director of the state office of consumer protection.