Credit card companies sued over payment protection charges
HONOLULU, Hawaii Hawaii Attorney General David M. Louie filed suit against seven major credit card companies last week in an attempt to stop their collection of payment protection charges. He is also seeking penalties against the companies for doing so. He has asked the citizens of Hawaii to check their credit card statements for what he claims is an unfair and deceptive business practice, that is charging for "payment protection."
The seven card companies that were named are Bank of America, Barclays, Capital One, Chase, Citi, Discover, and HSBC. The penalties they may have to pay for this charge could range from $500 to $10,000.
Attorney General Louie said that almost all of those who pay the charge receive no benefit from doing so, due to many fine-print restrictions. He has asked that customers report the charges to him so that the state can put a stop to the practice.