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