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Key Jewlers Store CC 11 Million lawsuit settlement

New Contributor

Key Jewlers Store CC 11 Million lawsuit settlement


Recieved this news alert today , about the attorney general and Kay jewelers 11 million dollar settlement. See article below

Attorney General James and Consumer Financial Protection Bureau Announce $11 Million Settlement with Sterling Jewelers (d/b/a Kay Jewelers and Jared)

Jewelry Retailer Signed Consumers Up For Store Credit Cards Without Consumers’ Knowledge or Consent

NEW YORK – Attorney General Letitia James and the Consumer Financial Protection Bureau today announced an $11 million settlement with Sterling Jewelers Inc. (“Sterling”) (doing business as Kay Jewelers, Jared The Galleria of Jewelry, and several other brands). The settlement resolves an investigation that revealed that Sterling signed consumers up for store credit cards without the consumers’ knowledge or consent. Sterling also enrolled consumers in a credit insurance product without consumers’ knowledge or consent and misrepresented the terms of the store cards. Pursuant to the settlement, Sterling will pay $11 million in penalties.

“By tricking consumers into enrolling in store credits cards, Sterling Jewelers betrayed customers’ trust and violated the law,” said Attorney General Letitia James. “This settlement holds the company accountable for its misconduct and ensures that no more consumers are deceived.”

Sterling is based in Ohio and operates approximately 1,500 jewelry stores, including around 130 stores in New York.

Sterling offers a store-branded credit card that can be used only at Sterling stores. Sterling imposed store card enrollment quotas on employees and based employee performance reviews and compensation on the quotas, creating intense pressure on employees to enroll consumers in store cards.

Sterling employees used a variety of tactics to deceive consumers into enrolling in store credit cards. In some cases, employees induced consumers to provide personal information by purporting to enroll consumers in a “rewards program” or discount program. In reality, sales representatives used the personal information to complete and submit credit card applications. Consumers often did not find out that they had applied for a card until they noticed an unexplained inquiry on their credit report or received the card in the mail.

In addition, when consumers knew they were applying for credit, Sterling employees misrepresented the terms of the store credit cards. Sterling employees told consumers that they were being enrolled in a “no interest” promotional financing plan, when in reality they were signed up for a plan that included monthly financing fees.

Finally, Sterling enrolled consumers in credit insurance offered in connection with the store credit cards without consumers’ knowledge or consent. In many cases, consumers did not find out that they were enrolled in credit insurance until they noticed fees for the product on billing statements.

This matter was handled for Attorney General James by Special Counsel Carolyn Fast of the Consumer Frauds and Protection Bureau under the supervision of Laura J. Levine, Deputy Bureau Chief of the Consumer Frauds and Protection Bureau, and Jane M. Azia, Chief of the Consumer Frauds and Protection Bureau.
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Message 1 of 10
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Community Leader
Super Contributor

Re: Key Jewlers Store CC 11 Million lawsuit settlement

Good!! Maybe this lawsuit will have them think twice before defrauding the consumer. I hope it hurt their pocketbook, and makes them close stores! I have no sympathy for them as a company, and glad they were sued!!

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Message 2 of 10
Community Leader
Valued Contributor

Re: Key Jewlers Store CC 11 Million lawsuit settlement

Glad I don't care for jewelry and have never been in a jewelry store.

 

You would think that exec management might have gotten a hint from Wells Fargo that this doesn't end well.


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Message 3 of 10
New Contributor

Re: Key Jewlers Store CC 11 Million lawsuit settlement

So....if could pay off if "he went to jared"? Lol, sorry couldnt help myself


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Message 4 of 10
Valued Contributor

Re: Key Jewlers Store CC 11 Million lawsuit settlement

So first Wells Fargo, now this! It is unbelievably crazy what greed will do.

I wish they were forced to close their doors.
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Message 5 of 10
Senior Contributor

Re: Key Jewlers Store CC 11 Million lawsuit settlement

Why is anyone surprised? This is the company that called its own products "total crap".

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Message 6 of 10
Regular Contributor

Re: Key Jewlers Store CC 11 Million lawsuit settlement


@wasCB14 wrote:

Why is anyone surprised? This is the company that called its own products "total crap".


Thanks...you made me look that up! Wow. The part where the old CEO says it in his speech is preserved on Youtube even: https://youtu.be/Nj9BZz71yQE?t=220

 

"The next morning, Ratner awoke to terrifying news: his comments had made national headlines to the effect of: “JEWELRY CEO CALLS HIS OWN PRODUCTS ‘CRAP.’”" https://thehustle.co/gerald-ratners-billion-dollar-speech

 

I also didn't know that Kay Jewelers, Jared, and Zales are the same company! https://www.signetjewelers.com/stores/default.aspx

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Message 7 of 10
Super Contributor

Re: Key Jewlers Store CC 11 Million lawsuit settlement

I guess every kon starts with Kay.  You know I can't spell very well.

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Message 8 of 10
New Visitor

Re: Key Jewlers Store CC 11 Million lawsuit settlement

They deserve more than 11 million lawsuits. They are Con artist, I too conned by them. I wished they go bankrupt. But not all are the same as them. Thanks to Reecoupons that I put back my faith in online shopping.

Message 9 of 10
New Visitor

They deserve more than 11 million lawsuits. They are Con...

They deserve more than 11 million lawsuits. They are Con artist, I too conned by them. I wish they go bankrupt. But not all are the same as them. Thanks to Reecoupons that I put back my faith in online shopping.

Message 10 of 10