State Receives $12 Million in Settlement With Credit Card Companies

State Receives $12 Million in Settlement With Credit Card Companies

Posted By Golomb & Honik, P.C. || 27-Apr-2015

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.

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