On April 25, 2014, the Federal Deposit Insurance Corporation (FDIC) published an enforcement order showing that Lincoln, Nebraska-based World’s Foremost Bank had agreed to pay $1 million in restitution for deceptive and unfair acts, including the charging of improper fees. The bank is the credit card arm of Sidney, Nebraska-based Cabela’s, a nationwide outdoor retailer. The sanctions come more than three years after the credit card bank agreed to pay nearly $10.4 million as part of a settlement with the FDCIC over assessing improper fees and other customer issues.
The restitution will include customer refunds for improper interest charges during certain zero-percent promotions as well as premiums paid for LifeLock identity-theft protection. Affected customers will also receive points redeemable for merchandise at Cabela’s retail stores.