Cabela’s Club Visa Card Led to Hefty Interest Rates

An offer for a deferred interest credit card with zero percent interest like a Cabela’s Club Visa may seem like a great option for consumers.

The promise of no interest payments for months or even years, can be enticing, especially for shoppers making big ticket purchases.

But as with many promising deals, there is a catch. A single late payment or a failure to pay a balance by a certain deadline can trigger sizable financial penalties.

Deceptive Deferred Interest Credit Card Tactics

A deferred interest credit card can be deceptive and consumers should take note of any fine print and not rely on a brochure or sales associate.

Many deferred interest credit cards pair an enticing offer for something along the lines of “Zero Percent Interest for 12 months” or “special financing” with a clause that allows finance charges to retroactively apply to your entire original purchase amount if you make a late payment or leave even the tiniest of unpaid balances when the introductory deal ends.

In contrast, most zero percent interest credit cards will assess interest only on whatever balance remains when the introductory term concludes.

Focus on Cabela’s Club Visa

Perhaps one of the least transparent about their deferred interest credit card is Cabela’s.

Cabela’s is a popular direct marketer and specialty retailer of hunting, fishing, camping, shooting, and related outdoor recreation merchandise, based in Sidney, Neb. The company also sells merchandise via its website and has 53 stores across the U.S.

The retailer has been known to offer a deferred interest credit card known as the Cabela’s Club Visa which can be used at any establishment that accepts Visa cards.

Founded in March 2001, Cabela’s financial subsidiary World’s Foremost Bank’s primary activity was to be a credit card issuer for the Cabela’s Club Visa card, a branded rewards card.

With 11 percent of total sales attributed to the subsidiary, in 2013 it ranked as the 13th largest issuer of credit cards in the US. Around a third of Cabela’s customers have the Cabela’s Club Visa card.

However, in 2014 World’s Foremost Bank was fined $1 million by banking regulators and ordered to pay Cabela’s Club Visa cardholders restitution for “deceptive and unfair acts.” Among other orders mandated with this fine, the credit card unit of Cabela’s was ordered to refund Cabela’s Club Visa cardholders all interest paid before the end of the 12-month interest-free period for cardholders who participated in zero percent interest promotions.

Additionally, in 2011, Cabela’s announced that it reached a settlement with the Federal Deposit Insurance Corporation (FDIC) regarding its deferred interest credit card policies and practices. The retailer was ordered to repay wronged cardholders $10 million plus a $250,000 penalty.

Deferred Interest Credit Card Lawsuit Investigation

Class action attorneys are investigating claims that consumers may have been deceptively hit with unexpected high interest charges on store credit cards.

If you participated in a zero percent interest or deferred interest credit card like the Cabela’s Club Visa and were faced with overwhelmingly high interest charges, you may be eligible to file a lawsuit against the retailer.

Join a Free Store Debit Card and Credit Card Fees Class Action Lawsuit Investigation

Did you participate in a 0% interest promotion on a store-branded credit card and were charged an interest fee? Were you unexpectedly charged a Returned Payment Fee on a store-branded debit card? You may be eligible to join this class action lawsuit investigation into allegedly deceptive store card fees.

Join the Investigation Now