The parent company of Kay Jewelers and Jared Galleria of Jewelry agreed to pay an $11 million penalty for signing customers up for a store credit card and payment protection without their knowledge and giving false information on the card’s interest rate, USA Today reported. Under the settlement, Sterling Jewelers Inc., a subsidiary of Signet Jewelers Ltd., will pay $10 million to the Consumer Financial Protection Bureau and $1 million to New York State. The Akron, Ohio-based company also must notify the bureau and state within 30 days if it must compensate any customers. “By tricking consumers into enrolling in store credits cards, Sterling Jewelers betrayed customers’ trust and violated the law,” said New York Attorney General Letitia James in a press statement. “This settlement holds the company accountable for its misconduct and ensures that no more consumers are deceived.” Sterling neither admits nor denies the allegations, according to court documents. Signet said in a company statement that it "disagrees with the allegations," but wanted to avoid the "time, expense and uncertainty of litigation."
