MBNA has agreed to pay out up to $7.8 million to settle a class-action lawsuit accusing it of misleading consumers.
The row focuses on ads for the bank’s low-rate credit cards. 1.8m people signed up for the 6.9% introductory rate. However, in 1996 Andrew Spark, a Florida lawyer, sued MBNA, claiming its ads misled customers about the benefits of switching to MBNA by failing to reveal that the low rate did not apply to new purchases.
MBNA will pay around $6.5m to reimburse customers for savings they did not make, around $3.57 each. In addition, the bank faces £1.28m in legal fees.
News source: New York Times