Consumer Bureau Action Tracker

CFPB v. Union Workers Credit Services, Inc.


State

Texas

target

Union Workers Credit Services, Inc.

Topics

Enforcement, Credit Cards

In 2015, the CFPB ordered Union Workers Credit Services to pay a $70,000 penalty, alleging it was a “sham” credit card that “signed up ‘thousands of consumers’ for a credit card that was actually only limited to purchasing their products and had a shady annual membership fee process.” The company agreed to pay the fine “without confirming or admitting to the allegations.”

  • The CFPB filed a lawsuit against Union Workers Credit Services, Inc. in U.S. District Court for the Northern District of Texas Dallas Division. [CFPB v. Union Workers Credit Services, Inc., case no. 3:14-cv-04410-L, filed 12/17/14]
  • The CFPB sued Union Workers Credit Services for allegedly running a “sham credit card” business. The CFPB claims Union Workers Credit Services “signed up ‘thousands of consumers’ for a credit card that was actually only limited to purchasing their products and had a shady annual membership fee process.”

“The_CFPB_said the company falsely advertised a buying-club membership card as a general purpose card. In doing so,_union workers_thought they were getting a typical credit card that can be used for most purchased but could instead only be used to purchase products from the company.”

“The agency also claims that_Union Workers_Credit ‘deceptively implied’ that it was affiliated with other unions by depicting public servants like firefighters and nurses in its advertising.”

Union Workers Credit Services agreed to pay a $70,000 penalty “without confirming or admitting to the allegations.” [Rachel Witkowski, “CFPB Set to Permanently Ban Texas Card Provider,” American Banker, 02/05/15]

Status

Inactive or Resolved


3:14-cv-04410-L 12/17/2014 2/3/2015

CFPB Sues Texas Company for Sham Credit Card
http://www.consumerfinance.gov/policy-compliance/enforcement/actions/union-workers-credit-services/

  • Consumer Financial Protection Bureau (CFPB)
  • Federal district court case
  • U.S. District Court for the Northern District of Texas Dallas Division
  • Nonbank
  • $70,000
  • Not Available

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