Union Workers Credit Services, Inc.
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_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]
Inactive or Resolved