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  Government Action: BBB reports on known government actions involving business’ marketplace conduct:

  CONSUMER FINANCIAL PROTECTION BUREAU SUES HORIZON CARD SERVICES FOR GOUGING LOW INCOME CONSUMERS
  

  On September 13, 2024, the Consumer Financial Protection Bureau [CFPB] sued Horizon Card Services and its CEO Robert Kane for allegedly deceiving consumers into signing up for its membership credit card and charging excessive fees.

  
  

  The suit alleges that from 2017 to 2021, Horizon and its CEO violated the Consumer Financial Protection Act by marketing their product as a standard credit card to entice consumers into signing up for what was a membership program that included a limited line of credit for use only at the Horizon Outlet online store. Also, the lawsuit alleges Horizon made it difficult for consumers to cancel the credit line and obtain refunds. Additionally, it is alleged that Horizon required customers to pay “membership fees” for the credit line for the first year of membership that exceeded the 25% cap set by the Truth in Lending Act.   

  
  

  Consumers may submit a complaint with the CFPB on their website or by calling 855-411-2372.

  The matter is pending. For more details go to The Consumer Financial Protection Bureau’s press release and the CFPB complaint.

  In response to the charges, Horizon Card Services has provided the following statement to the BBB:  

  "Since August 2020, Reliant Holdings, Inc., ("Reliant"), and its attorneys have been working in good faith with the Consumer Financial Protection Bureau (CFPB) to resolve our differences.  We were disappointed to learn of the CFPB's decision to unexpectedly file suit.

   

  Horizon Card Services has strived to offer our customers access to credit and benefits that were often-times unavailable to many. 

   

  One of our founding principles was that people looking to establish credit should not have to be saddled with paying exorbitant interest rates or application fees.  Our approach provided our customers access to a merchandise credit line that reported to a major credit bureau and enrolled them in a membership that provided other benefits. This is what we sold and this is what we believe we delivered.

   

  For the time period in question, Horizon Card Services informed our customers about how our programs worked, how much they would pay, and how to use our services.

   

  We have always given deference and respect to the agencies that regulate our programs, and Reliant Holdings is hopeful that it will be able to resolve its disagreements with CFPB in a timely manner."

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