On February 3, 2015, the CFPB announced that it had entered a stipulation for an order and final judgment with a Texas-based company that had falsely intimated that its membership card was a credit card. The card was advertised and offered to union workers and charged a membership fee. Purchasers of the card believed that that the card could be used as a credit card, when in fact it was only valid to purchase products from the company itself. Without admitting liability, the company agreed to a permanent ban on offering any credit, in addition to a penalty of $70,000. The order was filed in the U.S. District Court for the Northern District of Texas, where the CFPB’s litigation against the company was pending.
Blog Enforcement Watch February 03, 2015