Firm Has Settled with Discover, Other Credit Card Companies Over Deceptive Marketing Practices of Payment Protection Plans
DALLAS –(December 20, 2013) –Baron and Budd, a national law firm dedicated to protecting the rights of consumers, has announced settlements totaling more than $17 million on behalf of the states of West Virginia, Mississippi and Hawaii regarding the deceptive marketing of credit card payment protection plans. Baron and Budd attorneys Russell Budd, Burton LeBlanc, Laura Baughman and Ann Saucer served as counsel in the litigation, along with co-counsel and each state’s Office of the Attorney General.
Baron and Budd served as co-counsel for the State of West Virginia’s suits in which Discover, Chase, Bank of America, and other credit card companies paid $13 million to settle the claims brought against them. The firm also negotiated a settlement with one credit card company, Discover, on behalf of the states of Hawaii and Mississippi, totaling $4.45 million.
Baron and Budd worked closely with Patrick Morrisey, the Attorney General of West Virginia, Jim Hood, the Attorney General of Mississippi, and David M. Louie, the Attorney General of Hawaii, to achieve these results.
“This settlement sends a strong message to the credit card companies that what they are doing is not right,” said Burton LeBlanc, shareholder at Baron and Budd and current president of the American Association for Justice. “Through this case, these three state Attorneys General have held credit card companies accountable for deceptive marketing practices. It has truly been an honor to work with Generals Morrisey, Hood and Louie, and to help them change corporate conduct for the better in their states.”
Many consumers may be familiar with credit card payment protection plans. In most cases, consumers are contacted by their credit card company via phone and asked if they want to sign up for a payment protection plan. These calls, however, can be misleading to consumers, many of whom unintentionally and unknowingly sign up for these protection plans. After signing up, consumers are charged monthly fees by their credit card company for the service, even though they may not have understood what they were signing up for. The credit card company is able to make these charges because they already have the cardholder’s credit card information.
The plan is touted as a way to protect a consumer in the event of unemployment, disability or other difficult life events. However, these protection plans actually offer little to no real benefit to consumers, and are merely a means for credit card companies to make additional money.
Baron and Budd is a driving force in national litigation regarding financial fraud issues that harm consumers. Recently, the firm helped negotiate a national settlement with many of the country’s prominent banks over excessive overdraft fees. The firm was the lead negotiator in a $110 million settlement with JPMorgan Chase and assisted in negotiations that led to a $410 million settlement with Bank of America. These settlements forced banks to change their policies regarding overdraft fees. The firm currently represents numerous homeowners in various mortgage fraud lawsuits.
To learn more about Baron and Budd’s financial fraud practice, call 1.866.844.4556 or visit the firm’s website at //baronandbudd.com.
About Baron & Budd, P.C.
The national mesothelioma law firm of Baron & Budd, P.C. has a more than 30-year history of “Protecting What’s Right” for asbestos sufferers and their families. As one of the first law firms to successfully litigate an asbestos lawsuit, Baron & Budd continues to actively represent veterans, industry workers and others who are suffering as a result of exposure to asbestos. Baron & Budd achieved the largest mesothelioma verdict ever in the state of Texas, a $55 million verdict for an asbestos sufferer and his family in El Paso, Texas. Contact Baron and Budd at 1.866.855.1229 for additional information on mesothelioma treatments, mesothelioma cancer doctors and treatment centers and mesothelioma attorneys.