Sterling Jewelers Opened Unauthorized Cards, Suit Says (1)

Sterling Jewelers Inc. and Comenity Bank enrolled consumers in store credit cards without authorization, a class action filed May 8 alleges.

Sterling, which owns Kay Jewelers and Jared, settled claims over the practice with the Consumer Financial Protection Bureau and the New York Attorney General’s Office for $11 million in January 2019.

But that settlement doesn’t include any compensation for consumers affected by the company’s actions, the suit says.

Comenity bought Sterling’s in-house credit card portfolio in 2017 but turned a blind eye to “the deceptive practices behind Sterling’s high volume of credit card applications,” it says.

Sterling incentivized employees ...