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Signet Facing Probe over Credit Practices
Dec 6, 2017 4:50 AM
By Rapaport News
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RAPAPORT... US authorities are investigating Signet Jewelers over its
credit operations, the retailer revealed in a Securities and Exchange
Commission filing last week.
The Consumer Financial Protection Bureau (CFPB) informed
Signet on September 6 that it may take legal action against the jeweler, alleging
that it violated certain sections of the Consumer Financial Protection Act of
2010 and the Truth in Lending Act. The allegations relate to Signet’s in-store
credit practices, promotions and payment-protection products, the retailer
explained.
The inquiry began in late 2016, when the company responded to a civil
investigative demand, or government request for data. The Attorney General for the State of New York (NYAG) is
also investigating similar issues, Signet, the owner of Kay Jewelers, Zales and Jared, added.
Signet will have the opportunity to present its position to the CFPB before the bureau begins enforcement action.
“Signet continues to believe that its acts and practices
relating to the matters under investigation are lawful,” the company’s December
1 statement said. “Signet is currently unable to predict the timing or outcome
of the [response] process or NYAG investigation and no possible loss or range of
losses, if any, arising from the investigations is able to be estimated.”
Signet, which is currently in the process of outsourcing its
credit program, came under fire last year when James Grant’s influential
investment newsletter raised concerns about the jeweler’s credit operations and
whether it used credit to boost sales.
Image: Newscast |
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Tags:
Attorney General for the State of New York, CFPB, Consumer Financial Protection Act, Consumer Financial Protection Bureau, credit, credit operations, credit practices, NYAG, Rapaport News, Securities and Exchange Commission, Signet, Signet Jewelers, Truth in Lending Act
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