Events & AwardsJun 06, 2025
Here Are the 2025 Retailer Hall of Fame InducteesThis year’s honorees include a Midwest retailer and two multi-store independents, one in New York and the other in New England.
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
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
CollectionsJun 06, 2025
Piece of the Week: Harwell Godfrey’s ‘Granny Squares Eleanor’ Necklace As an homage to iconic crochet blankets, the necklace features the nostalgic motif through a kaleidoscope of cabochon-cut stones.
Events & AwardsJun 05, 2025
The 12 Fresh Faces in Couture’s Design AtelierDiscover the dozen up-and-coming brands exhibiting in the Design Atelier for the first time.
Brought to you by
The True Power Behind the Counter: Why Sales Associates Are the Heart of the Jewelry BusinessWhen investing in your jewelry business, it's important not to overlook the most crucial element of success: the sales associates.
SourcingJun 05, 2025
A Rare Suite of Rubies Has Arrived in Las VegasThe “Royal Ruby” Collection is a quintet of untreated rubies curated by collector Jack Abraham.
Weekly QuizJun 05, 2025
This Week’s QuizTest your jewelry news knowledge by answering these questions.
Events & AwardsJun 05, 2025
Daymond John to Give Keynote at JCK Las VegasThe entrepreneur and “Shark Tank” star will share his top tips for success.
Events & AwardsJun 05, 2025
Zillion Announces 'Women in STEM' Scholarship RecipientMeredith Tiderington, an electrical engineering student, was selected for the award.
Brought to you by
Clienteling Isn’t a Buzzword. It’s an Essential Business Model.More shoppers are walking out without buying. Here’s how smart jewelers can bring them back—and the tool they need to do it right.
Lab-GrownJun 04, 2025
GIA Reverting to More General Terminology for Lab-Grown DiamondsIt will quit assigning the stones specific color and clarity grades in favor of applying “new descriptive terminology.”
Events & AwardsJun 04, 2025
As JCK Talks Returns, Don’t Miss These 12 SessionsFrom design trends to sustainability, here’s a roundup of can’t-miss education sessions at JCK Las Vegas.
CrimeJun 04, 2025
10 Safety Tips for the Las Vegas Shows The Jewelers’ Security Alliance offers advice for those attending the annual trade shows.
CollectionsJun 03, 2025
In Her Latest Collection, Viviana Langhoff Is Leaning Into GoldThe designer is embracing bold pieces with weight to them in “AU79,” a collection she celebrated with a creative launch party.
FinancialsJun 03, 2025
Signet Jewelers Sees Turnaround in Q1 With Sales Ticking Up 2%On an earnings call, CEO J.K. Symancyk discussed what’s working for the company and how it’s preparing for the potential impact of tariffs.
SurveysJun 03, 2025
Consumer Confidence Improves in May The index partially rebounded after months of decline, due in part to the U.S.-China deal to temporarily reduce import tariffs.
CollectionsJun 03, 2025
Dakota Johnson Is Roberto Coin’s New Brand AmbassadorThe actress stars in the latest campaign set in Venice, Italy, and is set to participate in other creative initiatives for the jeweler.
GradingJun 03, 2025
Mason-Kay Jade Adds ‘Fei Cui’ to Jade ReportsThe company has joined other labs, including GIA and Lotus Gemology, in adopting the Chinese term for "jadeite jade."
SourcingJun 02, 2025
Gemfields’ June Auction to Include 36-Carat RubyThe large stone will be offered at its June sale along with a selection of secondary-type rubies from a new area of the Montepuez mine.
GradingJun 02, 2025
GSI Opens New Lab in Thailand Located in Bangkok, the laboratory is Gemological Science International’s 14th location worldwide.
TrendsJun 02, 2025
Amanda’s Style File: Three Gems for June Those born in June have a myriad of options for their birthstone jewelry.
SourcingJun 02, 2025
David Allouche Joins Grandview Klein DiamondsThe diamond industry veteran has been named its senior sales executive.
FinancialsMay 30, 2025
Movado’s Q1 Sales Slip Amid ‘Challenging’ Retail Environment The company plans to raise the prices of select watches to offset the impact of tariffs.
Policies & IssuesMay 30, 2025
Tariffs & Designers: Navigating Pricing in an Unstable EnvironmentBetween tariffs and the sky-high cost of gold, designers enter this year’s Las Vegas shows with a lot of questions and few answers.
CollectionsMay 30, 2025
Piece of the Week: Renato Cipullo’s ‘Hematite Blaze’ NecklaceDesigned by founder Renato and his daughter Serena Cipullo, it showcases a flame motif representing unity and the power of gathering.
Policies & IssuesMay 30, 2025
Trade Court Declares Trump’s Tariffs InvalidHowever, the tariffs remain in effect in the short term, as an appeals court has stayed the U.S. Court of International Trade’s decision.
CollectionsMay 29, 2025
Britney Spears Files Trademark for New Jewelry LineThe pop icon is one step closer to launching her “B Tiny” jewelry collection, a collection she first began posting about last fall.
Supplier BulletinMay 29, 2025
Inoveo Platinum Grain, Exclusively Distributed by StullerSponsored by Stuller
SourcingMay 29, 2025
Grizzly Auctions 6,620-Carat EmeraldIt was featured in the miner’s latest sale, which brought in $24.8 million.
