HSBC Hit With Class Action Over Credit Protection Fees

Law360, New York (July 6, 2010, 2:56 PM EDT) -- HSBC Bank USA Inc. is facing a class action from credit card holders alleging the bank skirts insurance regulations and rips off customers with costly and inscrutable credit protection products.

The complaint, filed Friday in the U.S. District Court for the District of New Jersey, claims HSBC has avoided state regulation and charged excessive fees for predatory credit card plans that are rigged to prevent subscribers from ever receiving the protections they pay for.

“HSBC violated the law not only through the sale of a product...
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