LAWSUITS AGAINST TRILEGIANT CORPORATION
Trilegiant Settlement - Consumers May Be Eligible For Refunds 12/11/2006
www.michigan.gov/ag/0,1607,7-164-17334_17362-157895--,00.html
Trilegiant
Little Rock, AR: (Jun-05-07) Arkansas Attorney General Dustin McDaniel's office filed a consumer protection action against Trilegiant, a Connecticut-based company that offers online shopping services and discounts to people who purchase memberships. The suit claimed that the company gave customers free trial memberships, but did not adequately inform them they would be charged automatically if they did not cancel within a certain time.
In a settlement reached, Trilegiant must pay restitution to Arkansas residents who were charged membership fees on or after July 1, 2001, but did not agree to a membership plan or did not understand they would be charged a membership fee or an automatic renewal fee. The company will not pay reimbursement to customers who used the services offered by the membership program. Further, as part of the settlement agreement, the company agreed to pay $15,000 to the attorney general's office for its costs. An added $15,000 will be used for reimbursements. [TIMES RECORD: CONSUMER FRAUD]
www.lawyersandsettlements.com/settlements/08313/online-shopping-membership.html
For immediate release – Tuesday, December 12, 2006.
Contact Bob Brammer – 515-281-6699.
Trilegiant to Make Refunds
in "Free-trial-offer" Discount Club Case
Trilegiant Corporation and Chase Bank settle consumer fraud investigation with 16 states.
Des Moines. Attorney General Tom Miller said today that Trilegiant Corporation and Chase Bank USA have reached an agreement with Iowa and fifteen other states, resolving allegations that the companies deceived consumers into paying for membership programs that supposedly offered discounts on things like car and home repair, shopping, and other goods and services.
The companies together will pay $14.5 million to resolve the matter, including over $8 million from Trilegiant for restitution to consumers nationwide. The companies also must reform their marketing practices under the settlement.
"We alleged that Trilegiant mailed solicitations to consumers with small checks, typically for $2 to $10, that many consumers mistakenly thought were a rebate or some kind of reward," Miller said. "But cashing the checks committed consumers to a 30-day ‘trial offer’ in some kind of membership program or buying club – and then to monthly or annual charges if they didn’t cancel."
The states’ investigation found that Trilegiant had agreements with Chase Bank to gain access to Chase’s customers and market the membership programs. Trilegiant used Chase’s name in mailings, and Chase reviewed and approved marketing materials, the states alleged.
Trilegiant will pay $8.325 million for consumer restitution nationwide. Consumers will be eligible if they already have complained to Trilegiant or their state Attorney General, or if they file a complaint in the next nine months. Trilegiant and Chase also together will pay $6.175 million to the sixteen states. The State of Iowa will receive $477,128 from Trilegiant and $175,000 from Chase to be used for future consumer fraud investigations, lawsuits and education.
Miller advised consumers to examine credit card and mortgage statements for any billing notices from Trilegiant Corporation of Norwalk, CT, and to watch for mail from Trilegiant that might include notices of memberships and how to cancel.
Consumers have been billed for annual membership fees ranging from $69.99 to $119.99, or monthly membership fees ranging from $6.99 to $9.99, depending on the particular program. If consumers didn’t cancel the "free-trial-offer," fees were billed to credit card or loan statements.
Membership programs went by various names, including AutoVantage Gold Service, AutoVantage Service, Buyers Advantage Service, CompleteHome Service, Just for Me, Pet Privileges Service, Shoppers Advantage Service, and Travelers Advantage Service.
Written complaints requesting restitution for unauthorized charges also can be submitted to the Iowa Attorney General’s Office by writing to: Consumer Protection Division, 1305 E. Walnut Street, Des Moines, IA 50319, or by sending e-mail to: consumer@ag.state.ia.us.
Cox Announces Multistate Settlements with Trilegiant Corporation and Chase Bank
Contact: Rusty Hills, Media Contact 517-373-8060
Agency: Attorney General
December 11, 2006
LANSING - Attorney General Mike Cox today announced a $14.5 million, 16-state settlement with Trilegiant Corporation and Chase Bank that resolves allegations that the companies misled consumers into paying for membership programs that purported to provide consumers with discounts on auto and home repairs, shopping, and other goods and services. Michigan will receive $150,000 from Trilegiant and Chase as part of the settlement agreement.
"Misleading customers into purchasing unwanted services is unacceptable," said Cox. "My office will work vigilantly to ensure that customers are provided with information that fully discloses the costs and fees associated with memberships and solicitations."
Today's settlements resolve claims by the Attorneys General that Trilegiant solicited consumers with offers of "free" trial membership programs without adequately informing consumers they would be automatically charged for these services if they did not affirmatively cancel within a specified period of time. The solicitations often included a check for between $2 and $10 which many consumers mistook for rebates or rewards. When cashed, however, the checks purported to create an ongoing payment agreement for the membership program after the free trial offer ended. Through an agreement with Chase, Trilegiant was provided access to Chase customers for the purpose of marketing the membership programs. Solicitations were often included in Chase mortgage or credit card statements, which prevented consumers from realizing the solicitations were in fact from Trilegiant. Because program charges were automatically billed to consumers credit cards or loan statements absent affirmative cancellation within a required time period, many consumers did not discover that they had purchased memberships until the charges appeared. Trilegiant membership product names include, but are not limited to, AutoVantage Gold Service, AutoVantage Service, Buyers Advantage Service, CompleteHome Service, Just for Me, Pet Privileges Service, Shoppers Advantage Service, and Travelers Advantage Service.
In addition to Michigan, Attorneys General from the following states joined today's settlements: Alaska, California, Connecticut, Illinois, Iowa, Maine, Missouri, New Jersey, North Carolina, Ohio, Oregon, Pennsylvania, Tennessee, Vermont, and Washington. Complete terms of the settlement agreement ("Assurance of Discontinuance") as well as a Consumer Alert with information on how to dispute unauthorized credit card charges are available on the Attorney General's Web site, http://
www.michigan.gov/ag.FOR IMMEDIATE RELEASE
December 11, 2006
McKenna Announces Multi-state Settlement with Chase Bank and Trilegiant
If you are unsure whether you purchased a membership program, carefully examine your credit card and mortgage statements and monitor your mail for notices from Trilegiant. Consumers can also contract Trilegiant electronically via the company’s Web site at www.trilegiant.com or by mail at Trilegiant Corporation, 100 Connecticut Avenue, Norwalk, CT 06850, attn: K. Buonagurato. Consumers outside Washington should contact the Attorney General’s Office in their state.
Media Contacts: Kristin Alexander, Public Information Officer, (206) 464-6432
David Huey, Assistant Attorney General, (253) 593-5057
Written complaints requesting restitution for unauthorized charges can be submitted to the New Jersey Division of Consumer Affairs, 124 Halsey Street, Newark, New Jersey 07102 or online at
www.nj.gov/oag/ca/ocp/ocpform.com.Deputy Attorney General Jennifer Dougherty handled the Trilegiant/Chase settlement agreement on behalf of the state.
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