This Blue Light Special is a Bad Deal
Lease-purchase financing at Kmart, Sears turns into millions in illegal fees and charges
Yes, Kmart and Sears still exist.
No, Kmart no longer does the “blue light special” where a flashing blue light would be placed in a section of the store where items were now being offered at a deep discount.
Instead, a financing company that works with Kmart and Sears is facing fines and penalties because of an illegal scheme to bilk customers of some $192 million.
Here’s more:
The Consumer Financial Protection Bureau (CFPB) has taken action against Tempoe, an Ohio-based nonbank lender that offered retail product financing to customers who did not qualify for traditional credit.
“Tempoe’s business model trapped consumers into contracts that required them to pay far above market price for goods and services,” said CFPB Director Rohit Chopra. “Today's order permanently bans Tempoe from offering such agreements.”
According to the CFPB, more than 325,000 consumers were charged more than $192 million in unlawful fees when their contracts extended beyond six months.
One More Time: You DO NOT Need a Credit Repair Firm
Here’s more on credit repair giant Lexington Law, a company that was the subject of a recent CFPB enforcement action because it harvested $2.7 billion in illegal fees from customers.
The company has an active social media presence and offers tips for managing a negative credit hit on your credit report.
However, it should be noted that you should never pay in advance for credit repair services AND you can do all the work of credit repair yourself - for free!
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