Philadelphia-based class action law firm Golomb & Honik, P.C. has announced
that JPMorgan Chase and Discover Financial Services have agreed to pay
$13.5 million in a settlement to the states of New Mexico, Mississippi,
and Hawaii as reparation for the misleading marketing practices used to
sell their credit card payment protection plans. Golomb & Honik, P.C.
Ruben Honik, Richard Golomb, Kevin Fay, and
Kenneth Grunfeld served with co-counsel and each state’s attorney general in these
cases. These settlements come after the resolution of $130 million-worth
of class actions with some of the largest credit card companies and banks
Richard Golomb, managing shareholder of Golomb & Honik and counsel in all of the
Attorney General and class action cases, “these settlements send
the message to large banks and credit card companies that it is no longer
business as usual in the way they take advantage of customers. These Attorneys
General recognized that what these corporations were doing was wrong and
fought to correct that wrong for their constituents. It was a pleasure
working with them.”
JPMorgan Chase will pay $6.9 million and Discover Financial Services will
pay $6.6 million. The funds will be divided amongst the three states.
The lawsuit alleged that the financial institutions engaged in deceptive
and misleading tactics in order to enroll customers in a protection plan
without their knowledge, or for enrolling customers for a monthly fee
knowing that the customer would not be able to make a successful claim
due to a number of broad exclusions. The banks have denied any wrongdoing.
Other cases against major credit card companies and banks are currently pending.