Investigation Looks at Deals Tied to Conn’s HomePlus Store Credit Card

Class action attorneys are undertaking an investigation of the credit practices of many different retailers, particularly in connection with their store-brand credit cards.

Some consumers allege they ended up having to pay finance charges that they weren’t led to expect when they signed up for these cards.

In particular, investigators are eyeing promotional deals that offer a zero-percent financing arrangement tied to use of one of these cards.

Typically, these payment plans allow a customer to avoid paying interest on a credit purchase as long as they pay off the purchase within a specified amount of time.

These arrangements can obviously benefit the customer if they’re able to pay off the purchase strictly according to the payment plan. In that case, they get the merchandise they purchased and enjoy the benefit of what amounts to an interest-free loan.

Trouble happens when some of these arrangements provide for an assessment of a lump finance charge for the whole purchase as soon as the customer fails to perform perfectly according to the payment plan.

Customers who have, for example, submitted late payments, paid less than the monthly minimum payment, or failed to pay off the balance in full by the deadline have found themselves on the hook for all the interest they were hoping to avoid by getting a zero-interest payment plan – sometimes calculated at exorbitant interest rates.

Conn’s HomePlus Store Credit Card

One of the retailers that falls within the current investigation is Conn’s HomePlus. Conn’s is a retailer of furniture, electronics and home appliances with store locations in western and southern states from Nevada to North Carolina.

Conn’s periodically offers promotional deals that let the customer avoid paying interest charges on a Conn’s purchase made on a Conn’s HomePlus store credit card, as long as they pay the purchase off within a specified time.

As of now, Conn’s offers several such promotions with payoff periods ranging from twelve months to five years.

According to the terms for the Conn’s HomePlus store credit card, equal monthly payments are required for no-interest promotional purchases. Other pages on the Conn’s website note that for certain promotional deals, making the minimum monthly payment may be required to avoid additional finance charges and fees.

Those charges could be hefty if they include interest at the customer’s credit card rate. Currently, the APR for purchases on new Conn’s HomePlus store credit card accounts exceeds 29 percent.

If interest for a large purchase were to be suddenly charged at that rate late in the payment period – say, late into the 5-year period Conn’s is offering right now on purchases of $3999 or more – the resulting finance charge could in fact be huge.

As an alternative to the Conn’s HomePlus store credit card, Conn’s also offers a retail installment plan called Yes Money.

While Yes Money is not tied to a store credit card, the terms for a Yes Money purchase do disclose that finance charges may apply on default of a Cash Option or Direct Loan Contract.

The finance rates charged for these purchases vary from state to state, reaching as high as 36 percent.

It remains to be seen on a case-by-case basis whether the finance charges assessed under these arrangements may create a legal claim. Customers who were hit with finance charges they weren’t expecting may qualify to participate in the current investigation free of charge.

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