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]