Judge Orders Texas Buying Clubs To Refund Money To Iowans
DES MOINES, Iowa (AP) — The Iowa attorney general's office says a judge has ordered two companies to give more than $2.7 million in refunds to Iowa customers with buying club memberships.
Polk County District Court Judge Richard Blane approved a consent judgment Thursday against JC Penney Direct Marketing Services and Stonebridge Benefit Services, both of Plano, Texas. Iowa Attorney General Tom Miller filed a lawsuit in August 2011 and added JC Penny Direct Marketing Services in March 2013.
The lawsuit contended the companies violated Iowa law by enrolling thousands of JC Penney customers into a program they weren't aware of, and then repeatedly charging their credit cards.
The companies must pay $2.7 million to customers and another $164,375 to the state for consumer fraud enforcement.
The companies agreed to the settlement but denied liability.
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