Cabela’s credit-card unit again fined over allegations of deceptive practices

[Omaha Steve]

Source: Omaha World Herald

By Russell Hubbard

The credit-card bank operated by outdoor retailer Cabela’s has been fined $1 million by banking regulators and ordered to pay cardholders restitution for “deceptive and unfair acts.”

The Federal Deposit Insurance Corp. said in an enforcement order posted to its website Friday that Lincoln-based World’s Foremost Bank agreed to the sanctions without admitting or denying violations. The bank is the credit-card arm of Sidney, Neb.-based Cabela’s, which sells via the Internet and operates 53 stores in the United States.

The bank’s practices, the FDIC said, require it to refund certain interest charges to cardholders and to repay others for add-on services purchased in relation to their credit cards, such as identity-theft protection. The amount of restitution wasn’t specified in the FDIC order.

“We at World’s Foremost Bank recognize we are operating in a dynamic and evolving regulatory environment and it is our responsibility to meet these expectations,” said a statement from Sean Baker, World’s Foremost’s chief executive. “As such, we immediately addressed the FDIC’s concerns and remain committed to providing legendary customer service to our cardholders, as we have throughout our history.”

FULL story at link.



Read more: http://www.omaha.com/article/20140425/MONEY/140429104/1707#cabela-s-credit-card-unit-again-fined-over-allegations-of-deceptive-practices

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Map of Cabela's locations:

[merrily]

1. Government fines = cost of doing business.

Businesses pay for a lot of things, hoping that it will be worth it because of the money they hope to make. Rent, salaries, advertising, etc. Government fines are in that mix for some companies.

When the USG settled with JPMorgan/Dimon, the stock of JP Morgan actually went up, in part because the settlement was so much less than Dimon had set aside for the settlement.

.....that government of the wealthy, by the wealthy, for the wealthy, shall not perish from the earth. Amen.

[dotymed]

2. Yes, American banks

figure the small fines a part of doing business. Of course no criminal charges or even being able to not admit
wrongdoing, will continue i to make this scenario a risk free proposition and therefore, still very profitable.
Not even a "black mark" against their smug name.
Just ours...

[merrily]

3. I am getting to the point where I'd settle for the officrs of car companies

that knowingly put dangerous cars on the market, allowing people to die before warning the public, get arrested. (Not only the officers, but anyone knowingly responsible.)

Especially when the fix would have cost (out of pocket) all of an extra $.22 per vehicle.

If it were not a corporation, they would have been charged with multiple counts of intentional manslaughter (I think?). Yet, we don't move against them.

The fix, of course, was to name a woman to head the corporation before the news hit the fan, another highly calculated and highly cynical move.

Let's start there, then go after the ones who "only" steal our money, instead of making us pay thousands for the four-wheeled murder weapon.

[Stuart G]

4. Please note::>>>>>>>>AGAIN FINED,,,,,,,,,,,,,,,,,,,, GREEDY CROOKS !!!! something extra,,,,

Not the first time for these crooks...I won't ever shop there...for anything..

oH,,,,And it is a Saturday....light news day...how many people will see this? As compared to say...A Monday..at about noon..

this asshole company reported earnings on Thursday April 24..., they knew this was coming, so they settled, probably if the news would be announced on Saturday...won't affect the stock till Monday...???if it does anything to the stock price at all.........Ownership doesn't give a damn about customers at this company....
...

[JoeyT]

5. If headlines keep having to use the word "Again" in relation to the same

company being fined over and over, the fines aren't steep enough. Make them just short of fucking ruinous and start launching everything you can think of at the people that gave the order to do it in the first place, and all the bad behavior will magically disappear.

Even if the head honcho is willing to risk prison time or financial ruin to give the order, the people below him aren't going to want to risk their reputation and the annihilation of the company to follow it.

[Botany]

6. I filled out a credit application @ Cabela's after they promised me $25 or $35 off of what

...... I was buying that day. After taking almost 1/2 an hour with a line and paperwork
I was told that I would get a credit card that was pre loaded with some money that I could use
@ Cabela's in the future and then I started to get some from the NRA too.

[PatrynXX]

7. although the original is in WI

store that is. never thought of it as Nebraska based although I've been to the above one in NE, they've kinda screwed the original store in PDC WI

[Scuba]

9. Cabela's has been operating since the 1960's. The Prairie du Chien store opened in 1998.

[Scuba]

8. This is the same Cabela's that features Wayne LaPierre in their catalogues, so what did you expect?

[The Jungle 1]

10. Welfare

The worst part about Cabela's is the amount of corporate welfare they consume. It is my understanding they will not open a store until the corporate welfare truck backs up and dumps millions of our tax dollars on them.
These crooks come into town and put the small business owners out of business and we pay for it. Then they rob us some more using credit card fraud.
When will we put a stop to this crap!

[sweetapogee]

11. I take it

that you will not be purchasing your hunting and fishing gear at Cabelas this year? In protest!

[jmowreader]

12. I'm surprised Cabela's runs its own credit card operation

Most retailers contract this out to Citibank or another big issuer...this is one of the reasons why.