Signet Jewelers has disclosed in a filing with the Securities and Exchange Commission that is being investigated by the Consumer Financial Protection Bureau and is facing a possible legal action by the agency.
The possible legal action involves violations of the Consumer Financial Protection Act and the Truth in Lending Act. The areas of the investigation center on the company’s “credit practices, promotions, and payment protection products,” according to the disclosure, which was made in the company’s quarterly report filed with the SEC.
Along with the CFPB, the Attorney General of New York is also investigating the company, Signet disclosed.
The CFPB investigation began last year. Signet received a Notice and Opportunity to Respond and Advise letter from the CFPB in September notifying it of the possible legal action. The company responded three weeks later, claiming “its belief that the potential claims lack merit.”
“Signet continues to believe that its acts and practices relating to the matters under investigation are lawful,” the company said. “Signet 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.”
