In 2012, the state of Hawaii sued seven credit card providers, including
Barclays, Capital One, HSBC, Discover, Banks of America, Citi, and Chase,
alleging illegal practices involved in the marketing of credit card protection
plans. Today, $12.5 million was transferred into Hawaii’s general
fund after the successful resolution of several lawsuits with national
credit card companies who engaged in deceptive business practices against
Hawaii consumers. Other actions by private class actions and the federal
government resulted in direct compensation to customers.
The payment transferred today puts nearly three years of litigation to an end.
According to Doug Chin, Hawaii’s Attorney General, consumers were
typically solicited via email or phone with confusing sales pitches purposefully
omitting critical information, causing many customers to sign up for services
that they would not otherwise have purchased. Some customers also alleged
that they did not give consent for services they were enrolled in.
Current executive director of the state office of consumer protection and
former Deputy Attorney General Steve Levins handled the case, along with
additional legal support from Golomb & Honik, P.C. and two other firms.
Click here to view the original press release.