Credit Card Membership Club Scam- Lawsuit Filed Against Chase by CA Attorney General

Posted On: July 21, 2005

California Attorney General Bill Lockyer recently filed a lawsuit against Chase Bank and Trilegiant Corporation for violating California laws prohibiting false or deceptive advertising and unfair business practices.  The named defendants include: Chase Bank, USA and Chase Manhattan Mortgage Corp. (Chase); and Trilegiant Corp. and TRL Group, Inc.

The complaint alleges that the defendants deceived tens of thousands of consumers into paying for membership programs that provided discounts on a variety of goods such as car maintenance, home repair, car rentals, travel services, shopping and pet products.

Attorney General Lockyer said:

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“In colluding to perpetrate this unsavory scheme, Chase and Trilegiant preyed on vulnerable senior citizens and consumers who read and speak limited English.    After tricking victims into joining these membership programs, the defendants used deceptive billing practices to maintain their ill-gotten income stream.   We’re filing this lawsuit to make the victims whole and obtain penalties to hold the companies accountable.”

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The defendants’ solicitation offer consumers “free” trial memberships in discount programs, without effectively informing them that they will be billed automatically for a one-year membership if they do not cancel within a specified time, which is normally 30 days.   The annual membership fee ranges from $69.99-$119.88.

The complaint alleges that, on occasion, Trilegiant solicits Chase’s credit card customers through their monthly statement.  The solicitations include checks as a “reward for being a valued Chase customer.”   When the checks are cashed, the customer automatically becomes a member of the discount buying program.

The programs are marketed under the following names: AutoVantage, AutoVantage Gold, Travelers Advantage, Complete Home, Shoppers Advantage, Buyers Advantage, Pet Privileges and Just for Me.

For more information, please
contact the California Attorney General’s office.

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