Union Workers Credit Services, Inc.
Documents in this case
- Complaint · · 10 p.
- Stipulation · · 14 p.
Case summary
CFPB filed a lawsuit against a Texas-based company, Union Workers Credit Services, for deceiving consumers into paying fees to sign up for a sham credit card.
Complaint ()
PDF of this document (10 pages)
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UNITED STATES DISTRICT COURT FOR THE NORTHERN DISTRICT OF TEXAS DALLAS DIVISION
CONSUMER FINANCIAL PROTECTION BUREAU,
Plaintiff, v.
UNION WORKERS CREDIT SERVICES, INC.,
Defendant.
Case No. ______________
COMPLAINT
The Consumer Financial Protection Bureau (the Bureau) alleges the following against Union Workers Credit Services, Inc. (UWCS): INTRODUCTION 1.
The Bureau brings this action under sections 1031(a), 1036(a), 1054(a), and 1055 of the Consumer Financial Protection Act of 2010 (CFPA), 12 U.S.C. §§ 5531(a), 5536(a), 5564(a), 5565, and under the Fair Credit Reporting Act (FCRA), 15 U.S.C. § 1681s(b)(1)(H). This action is based on UWCS’s violations of sections 1031(a) and 1036(a)(1) of the CFPA, which prohibit unfair, deceptive, and abusive acts or practices, in connection with UWCS’s offering of a general-use credit card. This action is also based on UWCS’s violations of the FCRA and its implementing regulation, Regulation V, 12 C.F.R. pt. 1022, in connection with UWCS’s offers of credit. 15 U.S.C. § 1681m(d); 12 C.F.R. § 1022.54(c).
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JURISDICTION AND VENUE 2.
This Court has subject-matter jurisdiction because it is brought under “Federal consumer financial law,” 12 U.S.C. § 5565(a)(1), presents a federal question, 28 U.S.C. § 1331, and is brought by an agency of the United States, 28 U.S.C. § 1345. 3.
Venue is proper in this district and the Dallas division because UWCS is located, resides, and does business in Dallas. 28 U.S.C. § 1391(b); 12 U.S.C. § 5564(f). PLAINTIFF 4.
The Bureau is an independent agency of the United States charged with regulating the offering and provision of consumer-financial products and services under “Federal consumer financial laws.” 12 U.S.C. § 5491(a). It has independent litigating authority, including the authority to enforce the FCRA and Regulation V. 15 U.S.C. § 1681s(b)(1)(H); 12 U.S.C. §§ 5531(a), 5564(a)-(b). The Bureau may act “through its own attorneys . . . in any action” to which it is a party. 12 U.S.C. § 5564(b). DEFENDANT 5.
UWCS is a Texas-based for-profit corporation that is located and does business in this district. UWCS has engaged in offering or providing to consumers extensions of credit that constitute consumer-financial products or services that are covered by the CFPA. 12 U.S.C. § 5481(5), (15)(A)(i). Accordingly, UWCS is a “covered person” under the CFPA. 12 U.S.C. § 5481(6).
FACTS 6.
UWCS has been in operation since about 2004.
7.
Until at least early November 2014, UWCS solicited customers by sending written direct-mail offers via the U.S. Postal Service and by maintaining a website. Case 3:14-cv-04410-L Document 1 Filed 12/17/14 Page 2 of 10 PageID 2
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8.
As described in more detail below, in both its direct-mail offers and its website, UWCS, explicitly or impliedly, offered consumers a general-use credit card, which was similar to a Visa- or MasterCard-branded credit card and allowed a consumer to access open-end credit that could be used to make purchases from many retailers unaffiliated with UWCS. UWCS calls the card it offered a “platinum card.” 9.
Beginning at least by January 2011, UWCS’s direct-mail offers described this “platinum card” as having a $10,000 credit limit and a 5% annual-percentage rate (APR).
10.
UWCS told consumers that they would receive the platinum card if they paid a “membership fee.” The membership fee was $37 for consumers who responded to direct-mail offers and $95 for consumers who enrolled through the UWCS website, which included an online-application form.
11.
By UWCS’s own admission, it has targeted certain types of consumers: “the average, Middle America-type hardworking individual who may have blue-collartype jobs.”
12.
In the last three years alone, hundreds of thousands of consumers in the United States responded to UWCS’s direct-mail offers or website application form and paid $37 or $95 membership fees to UWCS.
13.
The consumers who paid membership fees to UWCS did not receive general-use credit cards. In fact, the platinum card that UWCS advertised and provided to these consumers is not a general-use credit card, but merely a paper membership card that has allowed consumers to receive closed-end, purchase-specific credit from UWCS. Consumers could use the credit offered by UWCS to purchase only items advertised and sold by UWCS through a catalog or other means. Case 3:14-cv-04410-L Document 1 Filed 12/17/14 Page 3 of 10 PageID 3
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14.
Few consumers who paid the membership fee and received the UWCS platinum card ever purchased items from UWCS’s catalog or otherwise availed themselves of the closed-end credit that UWCS has actually provided. Rather, during the relevant period, $37 membership fees have accounted for the vast majority of UWCS’s revenue.
15.
Since at least 2009, thousands of consumers have filed complaints against UWCS with law-enforcement agencies and the Better Business Bureau. Many of those complaints were forwarded to the company. In many instances, consumers complained that they believed UWCS would provide them a general-use credit card. UWCS’s Direct-Mail Offer 16.
Between January 2011 and early November 2014, UWCS used at least two versions of its direct-mail offer and sent tens of millions of these offers to consumers. 17.
Both versions of the UWCS direct-mail offer used bold and capital letters to advertise, among other things, that the consumer is “pre-approved” for a “platinum card” with a 5% APR and a $10,000 credit limit, and that the offer is a “limited time offer.”
18.
Both versions of the UWCS direct-mail offer stated that consumers need to pay a membership fee of $37 to receive the advertised “platinum card.” 19.
The two versions of the UWCS direct-mail offer further stated, “You don’t have to worry if you have been denied access to a VISA® or MasterCard.®” or “You don’t have to worry if you have previously been denied credit by MasterCard® or VISA.®” The terms “VISA” and “MasterCard” appeared in bold text. 20.
For its direct-mail offers, UWCS targeted consumers who had recently made purchases from or otherwise responded to direct-mail offers sent by other Case 3:14-cv-04410-L Document 1 Filed 12/17/14 Page 4 of 10 PageID 4
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companies. UWCS also targeted consumers with union affiliations and consumers who met certain criteria based on their consumer reports (also known as “credit reports”). UWCS’s Website 21.
Starting in approximately 2005 and lasting through at least early November, 2014, UWCS has maintained a website at www.unionworkerscreditservices.com.
22.
During the relevant period, UWCS’s website repeatedly referenced the credit offered by the company and drew a direct link between UWCS’s products and general-use credit cards. A page titled “Union Workers Credit Services Resources: Credit Cards” provided an extensive description of how credit cards work. Following the description, the website stated: “Union Workers Credit Services provides its members special ‘Members Only’ catalogs and shopping services with the benefit of a low interest rate of 5% APR. JOIN NOW!”
23.
UWCS’s general advertisements of the UWCS services in the publicly available parts of its website did not expressly state that UWCS does not offer a generaluse credit card; nor did they state that consumers could use the UWCS credit to finance only the purchase of products from UWCS.
24.
The UWCS website’s public content also explicitly or impliedly stated that UWCS was union-affiliated. The website made numerous references to unions and union workers. For example, when printed, the header on the UWCS homepage read: “Union Workers Credit Services – providing credit services to the Union Workers of America.” At the top of the page, a banner included the company name, a seal, and images of a police officer, a firefighter, and medical professionals. Additional photos of workers were a central element later on the page.
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25.
Other UWCS website pages included design elements similar to those on the home page. Many of the pages were framed by the banner including the company name, logo, and photos of workers.
26.
The UWCS online-application form also referenced unions. The form sought information on new enrollees’ union affiliation and allowed new enrollees to select their union affiliation from a drop-down list. 27.
In fact, UWCS has no affiliation with any union. 28.
At various times during the relevant period, the UWCS website did not disclose that UWCS lacks a union affiliation. Prescreen Opt-Out Notices 29.
UWCS used consumer reports to select the recipients of both of its directmail offers. The recipients of UWCS’s direct-mail offers did not consent to this use of consumer reports.
30.
The two versions of the UWCS direct-mail offer differed with regard to disclosures about UWCS’s use of consumer reports. 31.
One version of the UWCS direct-mail offer included the following statement at the top of the page: “To opt-out of prescreened credit opportunities in the future you may call 1-888-567-8688. Details below in the PRESCREEN & OPT-OUT- NOTICE.” On the bottom of that direct-mail offer, the following language appeared: You have been approved for this Platinum Card offer based on among other things, information in your Credit Report. You were approved because you satisfied certain criteria, although this offer may be withdrawn subject to your continuing qualification. To be excluded from such credit opportunities in the future, call TransUnion at 1-888-567- 8688 or write TransUnion Opt-Out Request, PO Box 505, Woodlyn, PA 19094-0505 or visit www.optoutprescreen.com. The credit amount referenced above has already been established as your pre-approved credit limit and your new Platinum activation.
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32.
The other version of the UWCS direct-mail offer did not include statements similar to those described in the prior paragraph. Prior Government Actions 33.
UWCS has been the subject of multiple government investigations over the years, yet has failed to stop its deceptive practices. 34.
In 2005, the U.S. Postal Service (USPS) sued UWCS for misrepresentations contained in its direct-mail offers. The USPS alleged that UWCS falsely represented that it offered a general-use credit card and that UWCS was unionaffiliated. The company and USPS entered into a settlement agreement. 35.
In 2013, the New York Attorney General’s office sued UWCS for misrepresentations, including falsely representing that it offered a general-use credit card and that UWCS was union-affiliated. UWCS entered into a settlement agreement with the New York Attorney General’s office in which the company agreed to stop advertising and offering credit or financing services to New York customers. The company also agreed to provide refunds to certain consumers and pay $50,000 in penalties, fees and costs.
36.
In 2011, the Nevada Attorney General’s office issued a consumer alert regarding UWCS.
37.
Despite these government actions, at least until early November 2014, UWCS has failed to significantly alter or amend its deceptive practices.
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COUNT ONE (UWCS’s Violations of the CFPA – Deception) 38.
The allegations in paragraphs 1-37 are incorporated here by reference. 39.
In connection with the advertising, marketing, promoting, offering for sale, sale, or providing of credit, UWCS has represented, expressly or impliedly, that consumers would receive general-use credit cards if they enrolled and paid UWCS’s membership fee.
40.
In fact, UWCS has not provided a general-use credit card to any consumer. UWCS has provided only paper membership cards allowing consumers to purchase items advertised by UWCS in its catalog or through other means and to receive closedend, purchase-specific credit from UWCS that can be used to fund purchases only through UWCS.
41.
Therefore, UWCS’s practices are deceptive under the CFPA. Because UWCS is a “covered person,” its conduct is unlawful under sections 1031(a) and 1036(a)(1) of the CFPA, 12 U.S.C. §§ 5531(a), 5536(a)(1). COUNT TWO (UWCS’s Violations of the CFPA – Deception) 42.
The allegations in paragraphs 1-37 are incorporated here by reference. 43.
In connection with the advertising, marketing, promoting, offering for sale, sale, or providing of credit, UWCS has represented, expressly or impliedly, that it is affiliated or associated with labor unions.
44.
In fact, UWCS has no union affiliation or association. Case 3:14-cv-04410-L Document 1 Filed 12/17/14 Page 8 of 10 PageID 8
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45.
Therefore, UWCS’s practices are deceptive under the CFPA. Because UWCS is a “covered person,” its conduct is unlawful under sections 1031(a) and 1036(a)(1) of the CFPA, 12 U.S.C. §§ 5531(a), 5536(a)(1). COUNT THREE (UWCS’s Violations of the FCRA and Regulation V – Pre-Screen Opt-Out Notice) 46.
The allegations in paragraphs 1-37 are incorporated here by reference. 47.
In numerous instances, UWCS has used consumer reports on consumers without those consumers’ consent and in connection with credit transactions that were not initiated by the consumer.
48.
UWCS’s direct-mail offers were written solicitations for the credit transactions described in the above paragraph. 49.
In numerous instances, UWCS has failed to provide any disclosure regarding its use of consumer reports, including the short and long notices that Regulation V, 12 C.F.R. § 1022.54(c), requires. 50.
Therefore, UWCS’s conduct is unlawful under the FCRA, 15 U.S.C. § 1681m(d), and Regulation V, 12 C.F.R. § 1022.54(c). DEMAND FOR RELIEF
WHEREFORE, the Bureau requests that the Court: a.
permanently enjoin UWCS from committing future violations of the CFPA, 12 U.S.C. §§ 5531, 5536, the FCRA, 15 U.S.C. § 1681m(d), and Regulation V, 12 U.S.C. § 1022.54;
b.
grant additional injunctive relief as the Court may deem just and proper; c.
order UWCS to pay restitution to consumers harmed by its unlawful conduct;
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d.
order UWCS to disgorge all ill-gotten gains; e.
impose on UWCS a civil penalty; f.
award costs against UWCS; and g.
award additional relief as the Court may determine to be just and proper.
December 17, 2014
Respectfully submitted,
ANTHONY ALEXIS Acting Enforcement Director
JEFFREY PAUL EHRLICH Deputy Enforcement Director
JOHN WELLS Assistant Litigation Deputy
_s/Christina S. Coll_________
CHRISTINA S. COLL (CA Bar No. 250712) Enforcement Attorney Consumer Financial Protection Bureau 1700 G Street NW Washington, D.C. 20552 Telephone: (202) 435-7843 Facsimile: (202) 435-7329 E-mail: [email protected]
Attorney for Plaintiff Consumer Financial Protection Bureau
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Stipulation ()
PDF of this document (14 pages)
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UNITED STATES DISTRICT COURT FOR THE NORTHERN DISTRICT OF TEXAS DALLAS DIVISION
CONSUMER FINANCIAL PROTECTION BUREAU,
Plaintiff, v.
UNION WORKERS CREDIT SERVICES, INC.,
Defendant.
Case No. 3:14-cv-04410-L
STIPULATED FINAL JUDGMENT AND ORDER
The Consumer Financial Protection Bureau (Bureau) commenced this civil action on December 17, 2014, to obtain injunctive relief, civil penalties, and other relief, from Union Workers Credit Services, Inc. (UWCS). The Complaint alleges violations of sections 1031(a) and 1036(a)(1) of the Consumer Financial Protection Act of 2010, 12 U.S.C. §§ 5531(a), 5536(a), which prohibit unfair, deceptive, and abusive acts or practices, in connection with UWCS’s offering of credit. The Complaint also alleges violations of the Fair Credit Reporting Act (FCRA), 15 U.S.C. § 1681m(d); and its implementing regulation, Regulation V, 12 C.F.R. § 1022.54(c), in connection with UWCS’s offers of credit.
The Parties, by and through respective counsel, have requested that the Court enter this Stipulated Final Judgment and Order (Order). FINDINGS 1. This Court has jurisdiction over the parties and the subject matter of this action. Case 3:14-cv-04410-L Document 8-1 Filed 02/03/15 Page 1 of 14 PageID 25
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2. The Parties agree to entry of this Order, without adjudication of any issue of fact or law, to settle and resolve all matters in dispute arising from the conduct alleged in the Complaint.
3. Defendant neither admits nor denies any allegations in the Complaint, except as specifically stated in this Order. For the purposes of this Order, Defendant admits the facts necessary to establish the Court’s jurisdiction over it and the subject matter of this action.
4. The Bureau releases and discharges Defendant from all potential liability for law violations that the Bureau has or might have asserted based on the practices alleged in the Complaint, to the extent such practices occurred before the effective date of this Order and the Bureau knows about them as of the effective date of this Order. Notwithstanding this release, the Bureau may use the practices alleged in the Complaint in future enforcement actions against the Defendant or its affiliates to establish a pattern or practice of violations or the continuation of a pattern or practice of violations or to calculate the amount of any penalty. This release does not preclude or affect any right of the Bureau to determine and ensure compliance with the Order, or to seek penalties for any violations of the Order.
5. Defendant waives service under Rule 4(d) of the Federal Rules of Civil Procedure and waives all rights to seek judicial review or otherwise challenge or contest the validity of this Order. Defendant also waives any claim it may have under the Equal Access to Justice Act, 28 U.S.C. § 2412, concerning the prosecution of this action to the date of this Order. Each party will bear its own costs and expenses, including, without limitation, attorneys’ fees.
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6. Entry of this Order is in the public interest. DEFINITIONS The following definitions apply to this Order: 7. “Affected Consumers” includes any consumer who paid a Membership Fee to UWCS on or after December 15, 2011.
8. “Consumer Financial Product or Service” has the same meaning as set forth in the Consumer Financial Protection Act of 2010, 12 U.S.C. § 5481(5). 9. “Consumer Report” means that term as it is used in the FCRA, 15 U.S.C. § 1681a(d).
10. “Credit” has the same meaning as set forth in the Consumer Financial Protection Act of 2010, 12 U.S.C. § 5481(7).
11. “Effective Date” means the date on which the Order is entered by the court. 12. “Enforcement Director” means the Assistant Director of the Office of Enforcement for the Consumer Financial Protection Bureau, or his or her delegee.
13. “Membership Fee” means any fee paid to UWCS, to apply for or maintain a membership with UWCS that entitles the consumer to credit or that is referred to as a “Platinum Card” membership.
14. “Related Consumer Action” means a private action by or on behalf of one or more consumers or an enforcement action by another governmental agency brought against Defendant based on substantially the same facts as alleged in the Complaint.
15. “Service Provider” has the same meaning as set forth in the Consumer Financial Protection Act of 2010, 12 U.S.C. § 5481(26).
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16. “UWCS” or “Defendant” means Union Workers Credit Services, Inc. and its successors and assigns.
ORDER I.
BAN ON OFFERING OR PROVIDING CREDIT IT IS THEREFORE ORDERED that, 17. Defendant, whether acting directly or indirectly, is permanently restrained and enjoined from:
a. advertising, marketing, offering for sale, selling, assisting in the sale of, or providing credit; or b. receiving any monies or consideration from, holding any ownership interest in, providing services to, or working in any capacity for any person engaged in or assisting in the advertising, marketing, offering for sale, selling, or providing of credit.
Nothing in this Order shall be read as an exception to this Paragraph. II.
ADDITIONAL CONDUCT PROHIBITIONS IT IS FURTHER ORDERED that, 18. In connection with advertising, marketing, promoting, offering for sale, assisting in the sale of, selling, or providing any Consumer Financial Product or Service, UWCS, its officers, agents, servants, employees, and attorneys, and all other persons in active concert or participation with any of the above persons who have actual notice of this Order, whether acting directly or indirectly or by assisting others, are permanently enjoined and restrained from: Case 3:14-cv-04410-L Document 8-1 Filed 02/03/15 Page 4 of 14 PageID 28
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a. misrepresenting any material aspect of the product or service, including but not limited to:
i. misrepresenting that a consumer will receive a general-use credit card; or ii. misrepresenting that UWCS, or the product or service, is affiliated or associated with labor unions, including but not limited to by using union-related words or images;
b. violating the FCRA, 15 U.S.C. § 1681m(d), and Regulation V, 12 C.F.R. § 1022.54, including but not limited to by: i. using a Consumer Report relating to a consumer without that consumer’s consent and in connection with a credit transaction that is not initiated by that consumer; and ii. failing to provide the notices that Regulation V, 12 C.F.R. § 1022.54(c)(1) and (c)(2), requires. 19. Defendant is permanently enjoined and restrained from charging any consumer, including Affected Consumers, new or renewal Membership Fees. III.
CIVIL MONEY PENALTIES IT IS FURTHER ORDERED that, 20. Defendant must pay a civil money penalty of $70,000 to the Bureau. 21. Within 90 days of the Effective Date, Defendant must pay the civil money penalty by wire transfer to the Bureau or to the Bureau’s agent in compliance with the Bureau’s wiring instructions.
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22. The civil money penalty paid under this Order will be deposited in the Civil Penalty Fund of the Bureau as required by Section 1017(d) of the CFPA, 12 U.S.C. § 5497(d).
23. Defendant must treat the civil money penalty paid under this Order as a penalty paid to the government for all purposes. Regardless of how the Bureau ultimately uses those funds, Defendant may not:
a. claim, assert, or apply for a tax deduction, tax credit, or any other tax benefit for any civil money penalty paid under this Order; or b. seek or accept, directly or indirectly, reimbursement or indemnification from any source, including but not limited to payment made under any insurance policy, with regard to any civil money penalty paid under this Order.
24. To preserve the deterrent effect of the civil money penalty in any Related Consumer Action, Defendant may not argue that it is entitled to, nor may Defendant benefit by, any offset or reduction of any monetary remedies imposed in the Related Consumer Action because of the civil money penalty paid in this action (Penalty Offset). If the court in any Related Consumer Action grants such a Penalty Offset, Defendant must, within 30 days after entry of a final order granting the Penalty Offset, notify the Bureau, and pay the amount of the Penalty Offset to the U.S. Treasury. Such a payment will not be considered an additional civil money penalty and will not change the amount of the civil money penalty imposed in this action.
25. In the event of any default on Defendant’s obligations to make payment under this Order, interest, computed under 28 U.S.C. § 1961, as amended, will accrue on Case 3:14-cv-04410-L Document 8-1 Filed 02/03/15 Page 6 of 14 PageID 30
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any outstanding amounts not paid from the date of default to the date of payment, and will immediately become due and payable. 26. Defendant must relinquish all dominion, control, and title to the funds paid to the fullest extent permitted by law and no part of the funds may be returned to Defendant.
27. Under 31 U.S.C. § 7701, Defendant, unless it already has done so, must furnish to the Bureau its taxpayer identifying numbers, which may be used for purposes of collecting and reporting on any delinquent amount arising out of this Order. 28. Within 30 days of the entry of a final judgment, consent order, or settlement in a Related Consumer Action, Defendant must notify the Enforcement Director of the final judgment, consent order, or settlement in writing. That notification must indicate the amount of redress, if any, that Defendant paid or is required to pay to consumers and describe the consumers or classes of consumers to whom that redress has been or will be paid.
IV.
CUSTOMER INFORMATION IT IS FURTHER ORDERED that, 29. Defendant and its officers, agents, servants, employees, attorneys, and all persons who are in active concert or participation with any of the above persons who have actual notice of this Order, whether acting directly or indirectly, may not disclose, use, or benefit from consumer information, including the name, address, telephone number, email address, social security number, other identifying information, or any data that enables access to a consumer’s account (including a credit card, bank account, or other financial account), that Case 3:14-cv-04410-L Document 8-1 Filed 02/03/15 Page 7 of 14 PageID 31
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Defendant obtained before the Effective Date in connection with UWCS’s services. However, information about a particular consumer may be disclosed to the Bureau or if requested by a government agency or required by law, regulation, or court order.
V.
REPORTING REQUIREMENTS IT IS FURTHER ORDERED that, 30. Defendant must notify the Bureau of any development that may affect compliance obligations arising under this Order, including but not limited to, a dissolution, assignment, sale, merger, or other action that would result in the emergence of a successor company; the creation or dissolution of a subsidiary, parent, or affiliate that engages in any acts or practices subject to this Order; the filing of any bankruptcy or insolvency proceeding by or against Defendant; or a change in Defendant’s name or address. Defendant must provide this notice at least 30 days before the development or as soon as practicable after the learning about the development, whichever is sooner.
31. Within 7 days of the Effective Date, Defendant must designate at least one telephone number and email, physical, and postal address as points of contact, which the Bureau may use to communicate with the Defendant. Defendant must also designate someone, providing a name, email, and physical address, who will accept service of process for Defendant.
32. Defendant must report any change in the information required to be submitted under Paragraph 30 at least 30 days before the change or as soon as practicable after learning about the change, whichever is sooner. Case 3:14-cv-04410-L Document 8-1 Filed 02/03/15 Page 8 of 14 PageID 32
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33. Within 90 days of the Effective Date, and again one year after the Effective Date, Defendant must submit to the Enforcement Director an accurate written compliance progress report (Compliance Report), which, at a minimum: a. describes in detail the manner and form in which Defendant has complied with this Order; and b. attaches a copy of each Order Acknowledgment obtained under Section VI, unless previously submitted to the Bureau.
34. After the one-year period, Defendant must submit to the Enforcement Director additional Compliance Reports within 14 days of receiving a written request from the Bureau.
VI.
ORDER DISTRIBUTION AND ACKNOWLEDGMENT IT IS FURTHER ORDERED that, 35. Within 7 days of the Effective Date, Defendant must submit to the Enforcement Director an acknowledgment of receipt of this Order, sworn under penalty of perjury.
36. Within 60 days of the Effective Date, Defendant must deliver a copy of this Order to its owner and any other board members and executive officers, as well as to any managers, employees, Service Providers, or other agents and representatives who have responsibilities related to the subject matter of this Order or have had any such responsibilities since January 1, 2014, including but not limited to entities that provide or provided the following to UWCS: a. market research;
b. marketing services;
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c. drafting of marketing materials, including Defendant’s website; d. processing of data or payments related to Membership Fees; e. mailing lists or list management services;
f. processing or storage of data regarding Affected Consumers; g. intake of or response to consumer inquiries or complaints regarding Membership Fees; or h. Consumer Report information.
37. For 5 years from the Effective Date, Defendant must deliver a copy of this Order to any business entity resulting from any change in structure referred to in Section V, any future board members and executive officers, as well as to any managers, employees, service providers, or other agents and representatives who will have responsibilities related to the subject matter of the Order before they assume their responsibilities.
38. Defendant must secure a signed and dated statement acknowledging receipt of a copy of this Order, ensuring that any electronic signatures comply with the requirements of the E-Sign Act, 15 U.S.C. § 7001 et seq., within 30 days of delivery, from all persons receiving a copy of this Order under this Section. VII.
RECORDKEEPING IT IS FURTHER ORDERED that, 39. Defendant must preserve and create, for at least 5 years from the Effective Date, the following business records:
a. all documents and records necessary to demonstrate full compliance with each provision of this Order, as well as all submissions to the Bureau. Case 3:14-cv-04410-L Document 8-1 Filed 02/03/15 Page 10 of 14 PageID 34
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b. copies of all sales scripts, training materials, advertisements, websites, and other marketing materials, including any such materials used or created by a third party on behalf of Defendant;
c. for each individual Affected Consumer and his or her enrollment as a UWCS member, copies of any record of the consumer’s name; address; phone number; email address; Membership Fees paid; the date on which any Membership Fee was paid; any refund of the Membership Fee provided; the date and method of any such refund; and the reason that any refund was provided.
40. Defendant must retain the documents identified in Paragraph 38 for at least 5 years.
41. Defendant must make the documents identified in Paragraph 38 available to the Bureau within 14 days of receiving a request from the Bureau. VIII.
NOTICES IT IS FURTHER ORDERED that, 42. Unless otherwise directed in writing by the Bureau, Defendant must provide all submissions, requests, communications, or other documents relating to this Order in writing, with the subject line, “Consumer Financial Protection Bureau v. Union Workers Credit Services, Inc., Case No. 2013-0628-02,” and send them either:
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a. by overnight courier (not the U.S. Postal Service), as follows: Assistant Director for Enforcement Consumer Financial Protection Bureau 1625 Eye Street NW ATTN: Office of Enforcement Washington, DC 20006; or
b. by first class mail to the below address and contemporaneously by email to:
Assistant Director for Enforcement Consumer Financial Protection Bureau 1700 G Street, NW ATTN: Office of Enforcement Washington, DC 20552
IX.
COOPERATION WITH THE BUREAU IT IS FURTHER ORDERED that, 43. Defendant must preserve consumer records and cooperate fully – including by making requests to Defendant’s bank or other vendors or Service Providers for records related to Defendant, as necessary – to help the Bureau determine the identity and location of, and the amount of injury sustained by, each Affected Consumer. Defendant must provide such information in its or its agents’ possession or control within 14 days of receiving a written request from the Bureau.
44. Defendant must cooperate fully with the Bureau in this matter and in any investigation related to or associated with the conduct described in the Complaint. Defendant must provide truthful and complete information, evidence, and testimony. Defendant must appear and must cause its officers, employees, Case 3:14-cv-04410-L Document 8-1 Filed 02/03/15 Page 12 of 14 PageID 36
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representatives, or agents to appear for interviews, discovery, hearings, trials, and any other proceedings that the Bureau may reasonably request upon 5 days written notice, or other reasonable notice, at such places and times as the Bureau may designate, without the service of compulsory process. X.
COMPLIANCE MONITORING IT IS FURTHER ORDERED that, to monitor Defendant’s compliance with this Order, 45. Within 14 days of receipt of a written request from the Bureau, Defendant must submit additional compliance reports or other requested information, which must be made under penalty of perjury; provide sworn testimony; or produce documents.
46. Defendant must permit Bureau representatives to interview any employee or other person affiliated with Defendant who has agreed to such an interview. The person interviewed may have counsel present.
47. Nothing in this Order will limit the Bureau’s lawful use of compulsory process, under 12 C.F.R. § 1080.6 or otherwise.
XI.
RETENTION OF JURISDICTION The Court will retain jurisdiction of this matter for purposes of construction,
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modification, and enforcement of this Order.
IT IS SO ORDERED.
DATED this ___ day of ______________, 2015.
_________________________________
United States District Court Judge
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