Hawaii: $11.3M in Settlements Reached Against Credit Card Companies

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 General Fund.

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.