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Credit card company Citicorp Credit Services, Inc. is facing a class action lawsuit for hidden fees associated with its “virtually worthless” balance protection on Home Depot credit cards, a class action lawsuit claims.
The class action was filed in a New York district court on April 18 by lead Plaintiff Jacob Adoni, who alleges that the company did not alert him to balance protection fees when he signed up for the Home Depot credit card, and then did not issue a full refund of the fees required by law.
Adoni says that he was signed up for the balance protection program without his knowledge in 2008, when he got a Home Depot credit card at a Long Island store.
When Adoni contacted the number next to the line-item of Balance Protect on his statement, he was given “conflicting and confusing information including its cost, eligibility, and what it covered,” states the class action lawsuit.
The balance on Adoni’s card hovered at around $4,000, meaning he paid more than $40 a month in balance protection fees, according to the claim.
The class action lawsuit says that Home Depot and call center staff are incentivized to sign customers up to the Balance Protect program, and often do so without customers knowledge.
When customers raised questions about what they were signing up for, staff reassured them it was just the credit card, says the claim. However, when customers caught on to the added fee and tried to cancel the program, agents failed to follow requests, according to the class action.
“Balance protection insurance is virtually worthless to almost all cardholders due to the inability to qualify for coverage under its terms.”
In a 2015 Consent Order, Citicorp was required to pay $700 million in restitution to approximately 9 million cardholders for 12 months worth of balance protection fee refunds.
However, Adoni says that he never received the full refund and said that the company’s following compliance plan was inadequate as it never cancelled his enrollment in the program.
“Defendant engaged in deceptive, misleading and unfair acts by failing to cancel plaintiff’s enrollment in the Balance Protector service and refund all fees paid by plaintiff.”
Adoni seeks to represent all New Yorkers signed up for the Balance Protect program without their consent. He is suing for violations of business law, breach of contract, and unjust enrichment.
Credit and debit card fees are often the cause of numerous class action lawsuits. Earlier this year, Target agreed to a $8.2 million payout for a Target debit card fees class action lawsuit, resolving claims it deceptively marketed its debit cards. According to consumers in two class action lawsuits, Target misrepresents its debit card terms to encourage customers to sign up and buy things they otherwise wouldn’t have.
Do you have a store credit card? Have you ever noticed fees for programs you didn’t know you’d signed up for? Let us know in the comments section!
Adoni is represented by Spencer Sheehan of Sheehan & Associates, P.C.
The Citicorp Home Depot Credit Card Class Action Lawsuit is Adoni v Citicorp Credit Services Inc., Case No. 2:21-cv-02108, in the U.S. District Court for the Eastern District of New York.
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26 thoughts onHome Depot Credit Card Holders Unknowingly Paid for ‘Worthless’ Balance Protection, Class Action Alleges
Please add me. I’m so tired of this Home Depot credit card and the company.
I have had there card for 10 years now. I signed up for the card because we were doing a room addition and I was told I got a 5% price match against Lowe’s which was not true
I had a Home Depot card. In November of 2021 we bought a washer and dryer. One of them was on back order and we got a call after they had cancelled the order. We were told we could come in and reorder which we did. These were on a promotional balance for no interest if paid in a year. The appliance they returned was around $653.00. The amount was taken off of my total full balance, but they left that returned amount on the promotional balance so I am accruing interest on $653.00 I did not charge because that order was cancelled. We have talked to them several times and I was told yes they see it wasn’t taken off of the promotional balance, but they took if off of my full balance so I paid less interest overall. I must have explained 10 times that they are charging me interest on money I did not borrow. They said that is correct. I went to the store and I explained the whole thing and I said to them so they are making money off of money I did not borrow from them and they said yes, but there was nothing they could do because it is the finance company and they have no control. Also they only refunded I think $626.00 which was not the full amount of the appliance order they cancelled.
Please add me! I never be told their hidden fee, and never have agreements with them, never get their card and never use their card to purchase after that, they charge me high fee every day!
Please add me