If you have a store credit card with a prominent retailer, you may be familiar with Comenity Bank. The company is a giant debt collection agency and manages nearly 200 store credit cards from big names like Victoria’s Secret, Crate & Barrel, and several clothing brands. What you may not have heard about is that in 2014, Comenity Bank was in hot water for allegations that it violated terms of the Telephone Consumer Protection Act (TCPA).
This privacy notice is provided by the Bread Financial Holdings, Inc. family of companies, including Comenity Bank, Comenity Capital Bank, and Lon Operations LLC (dba Bread Financial). We cannot process any submission without a complete and accurate name, address, date of birth and social security number. By submitting this Application you are acknowledging having read and understood the Important Rate, Fee and Other Cost Information and, if approved, agreeing to be bound by them. Within 30 days of receiving your letter, we must tell you that we received your letter. We will also tell you if we have already corrected the error. Advice on how to answer a summons for debt collection.
A formal agreement between nonaffiliated financial companies that together market financial products or services to you. Comenity Bank was ordered to pay a $2 million civil penalty and around $53 million in restitution to consumers. Comenity Capital Bank was ordered to pay a $450,000 civil money penalty and an additional $8.5 million in restitution. The restitution payments will apply to any consumer who purchased the add-on products from Comenity between January 2008 and September 2014. Because making a payment restarts the clock on your debt and starts the statute all over again, you may have noticed a debt collector pushing you to make payments. Although they may disguise this as a way to get them off your back, it is quite the opposite. But are they treating consumers fairly when it comes to debt collection?
Comenity Bank Faces Class Action Tcpa Suit
The lawsuit was filed by Carrie Couser in October 2012 when she alleged that Comenity Bank called her cell phone at least 4 times a day without her consent and demanded that she pay an outstanding debt she did not even owe. The FDIC also alleged that the Comenity entities made false statements about certain terms and conditions on gift cards or credits to consumer accounts that were tied to the add-on products.
- Within 90 days of receiving your letter, we must either correct the error or explain to you why we believe the bill is correct. [newline]ClassAction.org is a group of online professionals (designers, developers and writers) with years of experience in the legal industry.
- Within 30 days of receiving your letter, we must tell you that we received your letter.
- If you’ve experienced questionable debt collection practices with a Comenity Bank credit card, fill out the form on this page and attach evidence, such as letters received or cell phone numbers called and dates of calls.
- You may ask us to send you further information about us, and we urge you to review other sources of information about us.
- Class Counsel estimates that each Class Member will receive between $15 and $35 from the Comenity Bank class action settlement.
Purchases made with cash advances from an ATM or with a check that accesses your credit card account do not qualify. Typically when it comes to debt collectors your debt has been passed around and sold more than one time. If an entity owns a debt, they have to legally show that they have the right to be pursuing a lawsuit against you. If you do not respond to the lawsuit you will not have the chance to ask for this proof, and your non-response is considered an “admission of responsibility”. Although it may be tempting to avoid responding to a debt collection lawsuit, one of the biggest mistakes made by debtors is not responding to the claim.
In order to be eligible for benefits from the Comenity Bank class action settlement, the cell phone number you provide must be on the Settlement Administrator’s list of eligible cell phone numbers. Class Counsel estimates that each Class Member will receive between $15 and $35 from the Comenity Bank class action settlement. However, the actual amount each Class Member will receive depends on the number of valid claims that are filed. The settlement fund will be distributed on a pro rata basis to all Class Members who submit a valid and timely Claim Form. According to the TCPA settlement website, if all Class Members file valid and timely claims, each Class Member would receive $1.36.
I waited on hold for 15 minutes two times in a row and both times when they finally answered, they hung up on me. I haven’t had access to my funds for almost a month and this morning an unauthorized hard inquiry by Comenity showed up on my credit report. State laws and individual companies may give you additional rights to limit sharing. You hereby authorize Comenity Capital Bank (“us” or “we”) to furnish our decision to issue an account to you to Zales The Diamond Card. You hereby authorize us to furnish, if your application is approved, information concerning your account to credit bureaus, other creditors and Zales The Diamond Card. By submitting this credit application, you are agreeing to the following with respect to certain consumer information about you. The lawsuit detailed on this page was voluntarily dismissed by the plaintiff on June 25, 2019.
Please ask questions and contribute to the knowledge surrounding credit cards. If you are dissatisfied with the goods or services that you have purchased with your credit card, and you have tried in good faith to correct the problem with the merchant, you may have the right not to pay the remaining amount due on the purchase. The TCPA is fully supported by consumer law attorneys who fight for the privacy rights of their clients. If you have not consented to receive calls and texts from a company like Comenity Bank, your rights have been violated. Each violation can possibly bring between $500 to $1500 per call or text message.
- In some extreme cases, such as New York, the statute of limitations is up to 20 years.
- The restitution payments will apply to any consumer who purchased the add-on products from Comenity between January 2008 and September 2014.
- State laws and individual companies may give you additional rights to limit sharing.
- This privacy notice is provided by the Bread Financial Holdings, Inc. family of companies, including Comenity Bank, Comenity Capital Bank, and Lon Operations LLC (dba Bread Financial).
This is because various practices are not legal, but debt collectors still practice them. These include harassment, calling at odd hours, and lying about who they are. If this has happened to you, you may benefit from working with a lawyer on a contingent basis. In October 2014, Comenity Bank paid $8.4 million to settle a Telephone Consumer Protection Act (TCPA) class action.
The information that I have supplied is true and correct. I agree that a credit report may be obtained for any lawful purpose, including in connection with the processing of an application, or subsequently with the update, renewal or extension of credit. Upon my request, I will be informed of whether or not a consumer credit report was ordered, and if it was, I will be given the name and address of the consumer-reporting agency that furnished the report. I agree to be bound by the terms of the Zales The Diamond Card account agreement. I acknowledge that I will receive a Zales The Diamond Card account agreement upon approval. The Diamond Card are issued and credit is extended by Comenity Capital Bank, Salt Lake City, Utah. If you have been solicited by a debt collection agency that refuses to act lawfully, you could be entitled to compensation.