HSBC Settles Consumer Fraud Lawsuit for $23.5 Million

HSBC Bank USA has agreed to pay $23.5 million to settle aconsumer fraud lawsuit that accused the company of deceiving its customers by enticing them to sign up for credit card insurance policies or enrolling them without their consent.

According to Law360(subscription required), the class action claimed that HSBC purposely lied to consumers and signed them up for payment protection either without their knowledge or by telling them the program would aid in alleviating some their credit card debt when his was not the case. The program promised that if cardholders become unable to pay, they would be placed under debt suspension. The plaintiffs said that the bank failed to inform consumers that they had to qualify for these terms and misled them about the price of the program.

The bank has been linked to a number of consumer fraud allegations, including violations of the Truth in Lending Act, common-law fraud, and fraudulent concealment.

If you or a loved one has been wronged by consumer fraud, you may be entitled to compensation. Contact Sokolove Law for a free legal consultation and to learn about your options.

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