PROVIDIAN PAYS TO SETTLE SUIT Providian Financial Corp. paid $105 million to settle a class-action lawsuit alleging the lender tricked customers into buying products and services they didn't want. The settlement covers millions of consumers who used Providian credit cards dating back to March 1995. A claims process is expected to be announced next spring, says Jonathan Levine, the New York attorney who represented Providian customers. Providian is the nation's fifth largest issuer of Mastercard and Visa credit cards. The lawsuits alleged Providian duped its customers into buying a mix of products and services, such as credit protection, then gouged them with fees that were difficult to remove. The allegations of misconduct have hounded Providian since May 1999, when San Francisco's district attorney began an investigation into the company's business practices. Providian agreed in June to pay more than $300 million to close those investigations. The company hasn't admitted any wrongdoing in any of its settlements, though the legal inquiries prompted it to revamp its business practices. Consumers won't receive the entire $105 million from the recent settlement as five law firms involved in the case will draw legal fees. The settlement will result in a one-time charge of $22 million against Providian's fourth-quarter profit. Despite the setback, Providian said it still expects its earnings to live up to Wall Street expectations of 71 cents to 73 cents per share. (12/29)
