AG NEWS RELEASE: State receives $12 million in settlement with credit card companiesPosted on Apr 27, 2015 in Latest News, Newsroom, Press Releases
HONOLULU – The state attorney general’s office today transferred $12.5 million into the state’s general fund after successfully resolving lawsuits with several national credit card providers for engaging in alleged unfair and deceptive business practices involving Hawaiʻi consumers.
In 2012 the state sued credit card providers Chase, Citi, Bank of America, Discover, HSBC, Capital One, and Barclays to stop illegal practices involved in the marketing of credit card protection plans. Today’s payment brings to an end almost three years of litigation.“Hawaiʻi consumers were typically solicited by their credit card company via phone or e-mail with misleading sales pitches that omitted important information,” said Attorney General Doug Chin. “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.”
Separate enforcement actions by the federal government and private class actions resulted in direct restitution to Hawaiʻi consumers.
Former deputy attorney general and current executive director of the state office of consumer protection Steve Levins handled the state’s case. The mainland specialty firms of Golomb & Honik, P.C., and Baron and Budd, P.C., and the local firm of Cronin Fried Kekina Sekiya & Fairbanks, provided additional support.
# # #
For more information, contact:
Special Assistant to the Attorney General