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US Consumer Watchdog Scrutinising Signet In-Store Credit Practices

Jewellery retail giant Signet Jewelers has filed a statement with the Securities and Exchange Commission (SEC) saying it has received a Notice and Opportunity to Respond and Advise (NORA) from the Consumer Financial Protection Bureau (CFPB) informing it that the CFPB’s Office of Enforcement is considering recommending that the CFPB take legal action against Signet for allegedly having violated sections of the the Consumer Financial Protection Act and the Truth in Lending Act.

Signet’s SEC statement said that the Attorney General for the State of New York is also investigating similar issues under its jurisdiction.

Signet said it submitted a response to the CFPB’s NORA letter on September 27, stating its belief that the potential claims lack merit.

The notice is with regard to Signet’s in-store credit practices, promotions, and payment protection products. The purpose of a NORA letter is to provide a party being investigated an opportunity to present its position to the CFPB before an enforcement action is recommended or commenced.

The notice stems from an inquiry that commenced in late 2016 when the company received and responded to an initial Civil Investigative Demand. Signet said it has cooperated and continues to fully cooperate with the CFPB.

Signet said it has also been cooperating with the NYAG’s investigation which remains ongoing.

The retailer said it continues to believe that its acts and practices relating to the matters under investigation are lawful. It said, however, that it is currently unable to predict the timing or outcome of the NORA process or NYAG investigation and no possible loss or range of losses, if any, arising from the investigations is able to be estimated.

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