Firm Has Settled with Bank of America, Previously Settled with Discover, Chase Over Similar Issues
DALLAS –(June 2, 2014) –Baron and Budd is announcing a settlement totaling more than $5 million on behalf of the States of Mississippi and Hawaii regarding Bank of America’s deceptive marketing of credit card payment protection plans. Baron and Budd lawyers Russell Budd, Laura Baughman, Ann Saucer and Burton LeBlanc served as counsel in the litigation, along with co-counsel and each states’ respective Office of the Attorney General.
Baron and Budd negotiated a $3.7 million settlement on behalf of the State of Hawaii and a $1.6 million settlement on behalf of the State of Mississippi, working with co-counsel and the Attorneys General from both Hawaii and Mississippi.
Baron and Budd worked closely with Jim Hood, the Attorney General of Mississippi, and David M. Louie, the Attorney General of Hawaii, to achieve these results.
“Through this settlement, we are sending a powerful message to the credit card companies that what they are doing is not right,” said Russell Budd. “We are honored to have worked with each state’s Attorney General to help promote a positive change in corporate conduct in their respective states.”
Many consumers may be familiar with credit card payment protection plans. In many instances, consumers are contacted by their credit card company via phone and asked if they want to sign up for a payment protection plan. However, these calls can be highly confusing and misleading to consumers, many of whom unintentionally sign up for a payment protection plan. 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 plan is advertised as a way to protect the consumer in the event of unemployment, disability or other difficult life events. Yet, these plans offer no real benefit for the consumer, and are merely used as a means for the credit card companies to make additional profit.
Baron and Budd previously settled similar cases regarding deceptive payment protection plans against Discover, Chase and others. The firm negotiated a $13 million settlement on behalf of the State of West Virginia with Discover, Chase, Bank of America and other credit card companies. The firm also previously negotiated a settlement with Discover on behalf of the States of Hawaii and Mississippi that totaled $4.45 million.