Consumers Warned Against Hidden Kohl’s Credit Card Fees

Store brand credit and debit cards offered by retail companies are frequently offered to customers in the United States, with the lure of gaining points or discounts.

However these practices have recently come under fire, as numerous consumers alleges these cards come with many downsides like returned payment fees and interest fees.

The Kohl’s credit card is an example of this, with customers alleging these practices are unfair and deceptive to customers. Oftentimes these retailers would promise zero percent interest owed, leaving customers shocked to discover they owe hundreds in finance charges.

According to credit experts, these store credit and debit cards are typically offered by retail stores that sell more expensive items like furniture and appliances. This is because customers are told they can pay off the item over time with deferred interest, instead of paying the total upfront.

However deferred interest can soon began to add up on the store credit or debit card, as the average period of deferred interest typically last between six to 18 months. Interest rates of these cards can be as high as 30%, which is based on the full purchase amount and not the remaining.

Customers are often caught off guard by these fees as they are not aware they may owe interest, and the policies allegedly not being adequately explained. Consumer advocates complain that the fine print attached to these cards is so complicated and poorly explained, that these store debit and credit cards could be considered a trap.

The frustration of this problem has recently reached is boiling point, as customers have actually filed legal action against these retailers.

Customers with a Kohl’s credit card are among this group, alleging the company had tricked them into signing up for these expensive cards.

Overview of Kohl’s Credit Card Allegations

Kohl’s and Capital One Financial Corporation had been recently hit with a proposed class action lawsuit in Pennsylvania, claiming that the company tricked their customers into signing up for the Kohl’s credit card.

These cards are allegedly useless and the company made unauthorized charges against them, when they reportedly promise payment protection services, according to the lawsuit.

Capital One Financial Corporation oversees the Kohl’s credit card program and also allegedly profits from this scheme. The plaintiffs allege that the companies violated consumer protection laws by allegedly charging customers “Account Protection” and “PrivacyGuard” fees in the form of Kohl’s Account Ease.

Known in the credit card industry as “slamming”, this illegal practice is described as enrolling unsuspecting consumers into credit monitoring or default protection services without gaining the customer’s consent.

Even though the accusations in this class action lawsuit are different than this new investigation, Kohl’s is once again at the center of criticism for its store brand credit cards.

Consumers who signed up for a Kohl’s credit card or other store branded cards and experienced deferred payment problems, may be able to file legal action.

Potential claimants should contact a specialized lawyer, to determine their eligibility for a store branded credit card lawsuit.

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