Attorney General Dustin McDaniel Reaches Agreement with Trilegiant Corporation
Little Rock- Attorney General Dustin McDaniel today announced a settlement with Trilegiant Corporation resolving allegations that the company tricked consumers into paying for membership programs providing for discounts on car and home repair, shopping, and other goods and services. The settlement resolves claims that Trilegiant solicited consumers with offers of "free trial" membership programs without adequately informing consumers they would be charged automatically if they did not cancel within a specified period of time.
"My office received numerous complaints from Arkansas consumers who discovered unauthorized charges on their credit cards," McDaniel said. "The consumers did not know they were signed up for a membership program and never made use of its supposed benefits. Nevertheless, they were charged for the program."
Under the agreement, Trilegiant must pay restitution to Arkansas consumers who did not consent to the membership plan, or did not understand that they would be assessed a membership charge or assessed a charge in connection with an automatic renewal, and who were first charged membership fees on or after July 1, 2001, provided that the consumer has not used the services offered by the membership program. A complete list of the covered membership programs is set forth below.
Trilegiant will also pay $15,000.00 to the Arkansas Attorney General's Office for its fees and costs. This amount will be placed in the Attorney General's Consumer Education and Enforcement Fund.
In addition to the monetary payment, the settlement requires Trilegiant to reform its business practices as follows:
· Clearly disclosing all terms of any "free" trial, including when and how the customer will be billed for any membership, and how to cancel a membership;
· Trilegiant is prohibited from identifying a solicitation as a "reward" or "rebate" offer, or implying that a check or other premium offered as part of a solicitation is anything other than a benefit or incentive for the purchase of a membership.
Consumers who believe they may have paid for a membership program are urged to carefully examine their credit card statements to see whether they have been or are now being assessed charges for any of these membership programs.
Complaints requesting restitution may be submitted to the Arkansas Attorney General's Consumer Protection Division online at www.arkansasag.gov or by writing to the Arkansas Attorney General's Office, Consumer Protection Division, 323 Center Street, Ste. 200, Little Rock, AR 72201. Consumers can also submit a complaint directly to Trilegiant online at www.trilegiant.com or by writing: Trilegiant Corporation, 100 Connecticut Avenue, Norwalk, CT 06850, Attn: Kristin Buonagura, Re: Arkansas Settlement.
The restitution period will end February 15, 2008.
Trilegiant Membership Programs
AutoVantage Gold Service
Buyers Advantage Service
CardSecure for Small Business Service
Cheap Tickets Gold
Clever Clubhouse Service
Credit Card Guardian Service
Deals and Destinations
Digital Protection Plus Service
Enhanced Hotline Service
Enhanced Privacy Guard Service
Event Privileges Service
Everyday Values Service
Everyday Values Gold
Everyday Privileges Gold
Great Fun Service
Great Options Service
HeathSAver Prescription Plus
Identity Safe Service
Just for Me Service
National Card Registry Service
National Home Protection Service
Pet Privileges Service
Privacy Guard Service
Shoppers Advantage Service
Small Business Central Service
Sucessful Investing and Money Management Service
Total Purchase Protection
Travelers Advantage Service
Travel ER Service