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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.

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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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