ALBANY, N.Y. >> First USA Bank, the nation's largest issuer of Visa credit cards, has agreed to pay $1.3 million as part of a settlement with New York and 27 other states, including Hawaii, over the way telemarketing firms sold products and services to the banking company's customers. First USA reaches deal
with Hawaii, other states
Associated Press
First USA, now doing business as Bank One Card Services, also agreed to police its third-party vendors to prevent deceptive telemarketing aimed at its more than 53 million credit card holders, according to New York state's Attorney General's office.
The settlement announced today ends a three-year investigation led by attorneys general in California, Illinois, New York and Vermont.
The four lead states each got $125,000 in the settlement, and the others will receive about $26,000, said Christine Pritchard, spokeswoman for Spitzer.
"As a result of the aggressive efforts by the states, approximately 150 million consumers of two of the most prominent credit card issuers will be provided better protections," New York Attorney General Eliot Spitzer said. A similar agreement was reached last year with Citibank, the world's largest credit card issuer.
Delaware-based Bank One Card Services, a subsidiary of Chicago-based Bank One Corp., admitted no wrongdoing in the settlement.
But the company agreed to pay $1.3 million to the states for investigative costs, including $125,000 for New York.
"We're looking at issues that were raised by these attorneys general more than three years ago," said Bank One spokeswoman Calmetta Coleman, adding changes were begun in 1999.
Bank One now notifies customers how to opt out of solicitations by calling a toll-free number, she said, and works with just one vendor for club memberships, Trilegiant based on Norwalk, Conn.
First USA Bank
