Sterling Jewelers Inc. reportedly enrolled customers in credit cards and related products without their consent.
1/17/2019 14:00
The Consumer Financial Protection Bureau and the People of the State of New York settled claims against Sterling Jewelers Inc. for violations of the Consumer Protection Act of 2010, according to a news release from the CFPB.
The bureau’s and the state’s parallel investigations found that Sterling violated the Consumer Financial Protection Act of 2010 by opening store credit-card accounts without customer consent; enrolling customers in payment-protection insurance without their consent; and misrepresenting to consumers the financing terms associated with the credit card accounts, according to the news release. The bureau also found that Sterling violated the Truth in Lending Act by signing customers up for credit card accounts without having received an oral or written request or application from them. The state of New York found that Sterling violated several provisions of state law.
Under the settlement, Sterling will pay a $10 million civil money penalty to the bureau and a $1 million civil money penalty to the state of New York. Sterling has also agreed to injunctive relief designed to prevent the continuation of the claimed illegal conduct.
View the complaint in the United States District Court for the Southern District of New York here as well as the consent order between the bureau, state and plaintiffs.
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