Fleet Said To Scam Credit Card Customers

This class action lawsuit, brought by attorneys of Green Welling on behalf of Fleet credit card customers, alleges that Fleet conducts a nationwide advertising campaign which is nothing more than a "bait and switch" scheme. The Complaint alleges that, pursuant to its scheme, Fleet induces consumers to transfer balances to a Fleet card with promises of no annual fees and favorable interest rates; then, once balances are transferred, switches the terms, imposing annual fees and high interest rates.

Plaintiffs allege that Fleet has executed a nationwide advertising campaign designed to lure consumers into transferring debt to Fleet credit card accounts through a program Fleet bills as, among other things, a "SmartMove Balance Transfer Service." They allege that, through uniform and standardized letters, Fleet: (1) offers consumers a fixed annual percentage rate ("APR"), usually 8.50% or lower, for debt balances transferred to Fleet; and (2) states that the fixed rate is "not an introductory rate." They claim that, in some offers, Fleet states that the fixed rate "does not automatically expire;" and that, in other versions, Fleet states that the rate will expire on a date certain, such as September 2001. Plaintiffs allege that, in some cases, Fleet represents that these accounts will be maintained with "no annual fee." Fleet includes in its promotional materials charts reflecting the savings that customers will realize through lower interest payments if they transfer their debts to a Fleet credit card.

Plaintiffs allege that Fleet fails to honor the terms of its offer. Plaintiffs say that after consumers transferred debts to Fleet, Fleet raised the applicable APR and imposed annual fees. Fleet stated that the changes resulted from the Federal Reserve Bank's raising interest rates. Notwithstanding its representation to current balance transfer customers that increases in interest rates by the Federal Reserve Bank prevented it from honoring the low fixed rates and "no annual fee" credit card accounts it had promised, Fleet continues to send the promotional letters described above to current or prospective cardholders, promising "no annual fee" credit cards with low fixed rates, often 8.50% or lower.

Plaintiffs assert claims for breach of contract and for unfair and deceptive business practices.

We continue to investigate Fleet's credit card practices. For further information on the continuing investigation, or if you have any information to provide, please contact us at the address below: