The Consumer Financial Protection Bureau (CFPB) has filed a lawsuit against Reliant Holdings, operating as Horizon Card Services, and its CEO Robert Kane, for allegedly deceiving customers and imposing excessive fees in violation of the Truth in Lending Act. The lawsuit claims that Horizon misled customers by promising credit cards with specified limits and no credit checks, while actually charging mandatory fees for access to an online outlet store. The CFPB highlighted that between 2017 and 2021, a mere 6% of Horizon cardholders utilized their cards, and only 1% to 3% engaged with the additional products offered. Customers faced mandatory fees that could reach up to 60% of their credit limit, which is a clear violation of lending regulations. Additionally, the company made canceling credit cards unnecessarily difficult, often requiring customers to endure sales pitches before allowing cancellations. The CFPB aims to halt these deceptive practices and impose penalties to aid victims.
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