The Hawaii attorney general recently initiated litigation against seven major banks (Bank of America, Barclays, Capital One, Chase, Citibank, Discover, and HSBC), claiming they sell worthless payment protection plans to consumers in Hawaii. The complaint alleges that the banks use highly misleading information in order to induce consumers to enroll in credit protection plans for which they do not even qualify. The result, the consumer is charged a monthly fee for an unneeded and often worthless payment protection plan.
The products are marketed as a way to protect cardholders against unauthorized charges and in the event of unemployment or disability to provide relief from immediate payment obligations. However, many of those enrolled in the payment protection programs do not even qualify to receive the benefits of the plans in which they are enrolled. Those who might be ineligible include retirees on fixed incomes, part-time or seasonal workers and self-employed individuals.
This practice is not limited to those who live Hawaii, and if you or someone you know has been sold a worthless payment protection plan by your credit card company, please contact us to discuss your legal rights.