On August 4, 2014, Attorney General David M. Louie announced that
settlements totaling approximately $11.3 million have been reached by the state of Hawaii against JP Morgan Chase, Bank of America, Citibank,
and Discover Financial Services. The settlements relate to deceptive marketing
practices for credit card protection plans.
According to the State Attorney General, consumers were solicited by these
credit card companies via email or phone with misleading sales pitches
excluding important information. Under Hawaii state law, this type of
marketing is considered deceptive and improper.
Other allegations of unethical conduct include:
- Providing misleading information about free trial periods
- Enrolling customers without their consent
- Billing for services not provided
- Distorting plan benefits
- Denying plan benefits to eligible customers
- Unfairly charging credit card customers for interest and fees
State officials say proceeds from the settlements will go to the State
Hawaii’s Attorney General has said that federal enforcement actions
involving the Office of the Comptroller of the Currency, Consumer Financial
Protection Bureau, and private class action lawsuits have actively been
taking steps to seek recompense for Hawaii consumers.