CFPB, NYAG Jeweler $14mn Card

On Jan. 16, CFPB, NYAG fined jewelers $14mn for card violation.

  • Settled claims against Sterling Jewelers Inc, operates 1,500 US jewelry stores.
  • Trades by various names, including Kay Jewelers, Jared, Galleria, JB Robinson.
  • Subsidiary of Signet Jewelers Ltd, retailer in US, Canada, and United Kingdom.

Alleged Violations

  • Sterling Jewelers opened store credit-card accounts without customer consent.
  • Enrolled customers in payment-protection insurance, without their permission.
  • Misrepresented the financing terms associated with their credit-card accounts.
  • Violated Truth in Lending Act by signing customers up for credit-card accounts
    without having received, an oral or written request or application, from them.
  • State of New York found that Sterling violated several provisions of State law.


  • Firm fined $10mn civil penalty to the Bureau and a $1mn civil penalty to NYS.