Prata vs. GE Capital

Court Preliminarily Approves Class Action Settlement

On September 24, 2002, Plaintiff Robert Prata filed suit against GE Capital Consumer Credit Card Co. and its related entities alleging that their “Same As Cash” advertisements were misleading. Prata’s action was similar to a prior lawsuit he filed against Bank One. Prata was a Bank One private label credit card holder who was assessed a late fee by Bank One for failing to make monthly minimum payments during the “Same As Cash” promotional period. GE purchased certain credit card accounts and account records from Bank One, and Prata alleged that GE continued to use the deceptive phrase “Same As Cash” to advertise deferred interest financing options that required minimum monthly payments. Plaintiff alleged that GE’s “Same As Cash Finance Plans” and the advertisements used to promote them were likely to mislead consumers into believing that no minimum monthly payment was required during the promotional period and, as a result, consumers were improperly assessed late fees. GE denied Plaintiff’s allegations but agreed to settle the case on a class basis. On December 9, 2003, the Los Angeles Superior Court approved a class action settlement providing injunctive relief and a cash fund of $2.5 million, which was distributed among 26,305 consumers. Please contact us by clicking here.