Iowans who were unknowingly enrolled in membership clubs after making a purchase from JCPenney and were charged monthly fees will be getting $2.7 million in refunds.
The refunds are the result of a consumer fraud lawsuit Iowa’s attorney general filed against two Texas-based companies affiliated with JCPenney. Prosecutors argued the companies enrolled “thousands of JCPenney customers into membership programs” after customers made a JCPenney purchase online or over the phone. Many consumers didn’t know they were paying monthly fees for membership in buying clubs with names like Fun Family Rewards, Everyday Bargains, Perfect Home and Savings2Go.
The checks for Iowans who are due refunds should be in the mail in late 2013 or early 2014.
Iowa Attorney General Tom Miller urges consumers to be wary of “free trial offers” and he recommends that consumers check their credit card and bank statements every month for any unauthorized charges.