SurveysJul 27, 2026
Jewelry Leads Luxury Market Amid Stabilization, Bain SaysBain & Company delved into the trends shaping the luxury market, the impact of AI, and more in its recent study.
MajorsDec 05, 2017
Signet In-Store Credit Practices Being Investigated
Both the federal Consumer Financial Protection Bureau and the New York state attorney general are looking into them.
Akron, Ohio--Signet Jewelers Ltd.’s in-store credit practices and promotions have come under scrutiny from two government bodies, the retailer said in an SEC filing made late Friday.
In the company’s quarterly report to the Securities and Exchange Commission, the retailer states that the Consumer Financial Protection Bureau (CFPB) notified it via letter Sept. 6 that its Office of Enforcement is considering recommending that the CFPB take legal action against Signet for allegedly violating various provisions of the Consumer Financial Protection Act of 2010 and the Truth in Lending Act.
The Consumer Financial Protection Act was created in 2010 in the wake of the financial crisis, which many blamed in part on the “predatory” lending practices in the housing market, to give the government more oversight on financial transactions. The Truth in Lending Act has been around since the 1960s, and was created to protect consumers from unfair billing and credit card practices.
On the CFPB website under the consumer complaints section, a search of the term “Sterling Jewelers,” the name for the division that oversees Kay Jewelers and Jared the Galleria of Jewelry, brings up 585 complaints, out of the more than 900,000 total complaints on the site. (The site returned no results when the terms “Signet,” “Zale” and “Zales” were searched.)
The complaints, which are filed anonymously, include accounts of aggressive debt collectors, charges appearing on accounts that were believed to have been paid off, accounts that were opened as a result of identity theft, lack of responsiveness from customer service, and lack of clarity on the part of in-store employees.
One commenter who claimed to have visited a Jared store in Georgia over the summer wrote this: “While I was there my girlfriend was trying on rings, the manager pulled me to the side and told me he could do a quick check to see what kind of financing I would qualify for when the time comes. He clearly advised me this was not an application for credit, but a means of seeing how much credit I could be pre-approved for. I even double-checked and was clearly assured by [two other people] that this was not an application for any type of credit and would not cause a hard pull on my credit report. It turns out they were both knowingly lying and filling out a credit card application on my behalf.”
The
Editors' Picks
Sponsored by
CFPB’s September letter stems from an inquiry that began in late 2016.
The New York state attorney general also is investigating the jewelry retailer’s in-store credit practices. That investigation is ongoing.
In response, Signet said that it believes the potential claims being investigated lack merit and noted that it has been cooperating with both regulators.
Signet began reviewing its credit practices in 2016, after analysts publicly began asking if the retailer was lending to too many consumers with low credit scores while also questioning how past-due accounts were being accounted for on its balance sheet.
In May of this year, the retailer announced plans to outsource its entire credit portfolio, beginning with the sale of $1.0 billion worth of prime-only accounts to Alliance Data System Corp, as well as the launch of a program run by a subsidiary of rent-to-own company Aaron’s Inc. that allows consumers who don’t qualify for credit to do a lease-purchase on jewelry.
Signet said on its most recent earnings call that it is still looking for a buyer for its non-prime accounts while also noting that the migration of the credit program resulted in lost sales in Q3.
The New York state attorney general also is investigating the jewelry retailer’s in-store credit practices. That investigation is ongoing.
In response, Signet said that it believes the potential claims being investigated lack merit and noted that it has been cooperating with both regulators.
Signet began reviewing its credit practices in 2016, after analysts publicly began asking if the retailer was lending to too many consumers with low credit scores while also questioning how past-due accounts were being accounted for on its balance sheet.
In May of this year, the retailer announced plans to outsource its entire credit portfolio, beginning with the sale of $1.0 billion worth of prime-only accounts to Alliance Data System Corp, as well as the launch of a program run by a subsidiary of rent-to-own company Aaron’s Inc. that allows consumers who don’t qualify for credit to do a lease-purchase on jewelry.
Signet said on its most recent earnings call that it is still looking for a buyer for its non-prime accounts while also noting that the migration of the credit program resulted in lost sales in Q3.
More on Majors
The Latest
SourcingJul 27, 2026
‘Rubies’ Goes on Display at Harvard MuseumThe exhibition reveals the gemology, geology, and cultural history of the iconic red gemstone.
Policies & IssuesJul 24, 2026
New Trump Tariffs: What They Mean for Jewelry The new sweeping slate of tariffs impacts 60 countries, including India, China, Thailand, Hong Kong, and the United Arab Emirates.
Brought to you by
Wedding Band Trends 2026: Personalization Takes Center StageColored gemstones, artisan finishes, mixed metals, and meaningful details are shaping demand in bridal jewelry.
TrendsJul 24, 2026
Amanda’s Style File: Ode to ‘The Odyssey’From coin pendants to diamond shields, these old world-inspired jewels are the perfect accessory for an epic journey.
Weekly QuizJul 23, 2026
This Week’s QuizTest your jewelry news knowledge by answering these questions.
TrendsJul 24, 2026
Courtney Leidy’s Silk Cord Pendants Center Unexpected Pairings Our Piece of the Week pairs a checkerboard-cut amethyst with an ivy green silk cord.
PodcastsJul 23, 2026
Episode 7: Reinhold Jewelers on the Power of RelationshipsMildred Marcano Abrams and Yael Reinhold join the podcast to talk community connections, holiday plans, and preserving Reinhold’s legacy.
Brought to you by
Building the Future of Jewelry Retail: DCA Expands Education, Leadership Development, and Workforce SolutionsDCA is preparing the next generation of professionals by supporting workforce development, leadership growth, and career advancement.
SourcingJul 23, 2026
De Beers’ Production Jumps 88 Percent in Q2 Production also was up in the first half of 2026 but is expected to “substantially” decrease in H2 as two key mines undergo maintenance.
CollectionsJul 23, 2026
Silvia Furmanovich’s New Collection Travels Back to the 1920s“Art Deco” fuses ancestral techniques, rare materials, and modern perspectives as a tribute to the optimism and curiosity of the movement.
IndependentsJul 23, 2026
Sissy's Log Cabin Opens Casino StoreThe jeweler’s newest store is inside Arkansas’ Saracen Casino Resort.
WatchesJul 23, 2026
Movado Inks Licensing Deal With Kate Spade New YorkThe watch company will design, manufacture, and distribute Kate Spade New York watches.
Policies & IssuesJul 22, 2026
Trump to Put 50% Tariff on Canadian Goods The higher tax is set to go into effect in August and will apply to loose polished diamonds as well as precious and base metals jewelry.
CollectionsJul 22, 2026
Monica Rich Kosann’s High Jewelry Is FruitfulThe “Enchanted Garden” series features a cherry, lemon, and pear that each hold a little secret inside.
IndependentsJul 22, 2026
Liljenquist Beckstead Opens Rolex New BoutiqueIt’s located in Tysons Galleria, an upscale shopping center in the Washington, D.C., metro area.
Events & AwardsJul 22, 2026
NY Now Returns in August Under New OwnershipThe show, recently acquired by Rockview Management Group, will be held at New York City’s Javits Center from Aug. 2-4.
ColumnistsJul 21, 2026
Sherry Smith: Shattering the Illusion of the ‘Either/Or’ Diamond MarketSmith offers retailers guidance on creating an environment where natural and lab-grown diamonds can both thrive.
Events & AwardsJul 21, 2026
Apollo Funds Completes Emerald AcquisitionFormer Emerald President and CEO Hervé Sedky has transitioned to the role of senior advisor.
CollectionsJul 21, 2026
Graff’s New Butterfly High Jewelry Brooches MetamorphosizeThe 12-piece capsule collection transforms from brooches to pendants.
SourcingJul 21, 2026
Anglo Reportedly Selects Gareth Penny’s Consortium as Top Bidder for De BeersA Botswana government official told lawmakers Anglo has selected The Global Diamond Consortium, an entity chaired by Penny, to buy De Beers.
Policies & IssuesJul 20, 2026
Tariffs on Brazil to Increase But Rough Gemstones ExemptThe new tariff, imposed after a Trump administration study, is 25 percent and will stack on top of existing tariffs.
CollectionsJul 20, 2026
Vhernier Transforms ‘Freccia’ Collection Into High JewelryThe collection from 2014 has been reinterpreted into high jewelry with its signature triangular-shaped elements.
Events & AwardsJul 20, 2026
TJS Accepting Speaker Proposals for 2027 EventOrganizers are looking for presentations on topics like manufacturing, technology and research, bench work, gemstones, and sustainability.
CollectionsJul 17, 2026
HOWL Taps Shailene Woodley for ‘Home Sweet Home’ CampaignWoodley is seen in the campaign wearing our Piece of the Week, the “Frida” collar featuring 13 pieces of hand-carved Venetian glass.
SourcingJul 17, 2026
U.K. Woman Pays £5 for £15K Diamond Ring at Car Boot SaleA WeBuyVintage jewelry expert uncovered how much the flea market find was actually worth.
SourcingJul 17, 2026
Diamond Dealer Jeff Pancis Pens MemoirThe founder of natural colored diamond wholesaler Pancis Gems shares stories from his five decades in the industry.
Events & AwardsJul 17, 2026
Gem Awards Opens 2027 Nomination PeriodSubmissions for the milestone 25th annual Gem Awards will be accepted across three categories from now through July 31.
