Bluestem Group Announces Select Operating Subsidiaries Reach Settlement with BCFP
EDEN PRAIRIE, Minn.--(BUSINESS WIRE)--Oct 4, 2018--Bluestem Group Inc. (“Bluestem” or the “Company”) (OTCMKTS:BGRP) today announced that its wholly owned subsidiaries, Bluestem Brands, Inc., Bluestem Enterprises, Inc. and Bluestem Sales, Inc., agreed to a settlement with the Bureau of Consumer Financial Protection (“BCFP”). Today’s settlement resolves the BCFP’s allegations regarding Bluestem’s prior practices with respect to the forwarding of payments Bluestem received on already-sold consumer credit accounts (“direct pays”) to debt buyers. The terms of the settlement include a $200,000 civil money penalty as well as various elements of injunctive relief related to Bluestem’s direct pay and debt sale practices. Aside from the direct pay allegations, the BCFP has not informed Bluestem of any other allegations that it believes could lead to legal action.
Lisa Gavales, a member of Bluestem’s Board of Directors and interim Chief Executive Officer of the Company, remarked, “We cooperated with the BCFP throughout the investigation, including providing timely responses to all of its requests, and we are satisfied with the outcome of the matter. Prior to the BCFP’s investigation, as part of the regular operation of our compliance management program, we self-identified the facts underlying the direct pay issues and began our own remediation of those issues. In fact, the Company has already implemented most of the injunctive provisions of the settlement and we do not anticipate any significant impact on our operations. Bluestem has long been committed to treating our customers respectfully and fairly, providing them with a broad array of quality products, and making credit offers that are fair and transparent. As an ongoing practice, we continuously evaluate and mature our compliance management function, striving to comply with all applicable laws, and we will continue to do so in the future.”
About Bluestem Group
Bluestem Group Inc. is a holding company whose businesses include Bluestem Brands, a national, multi-brand, online retailer of a broad selection of name-brand and private label general merchandise serving the boomer and senior demographic, generally considered age 50 and over, and low- to middle-income consumers over all age demographics through 13 retail brands that include: Appleseed’s, Bedford Fair, Blair, Draper’s & Damon’s, Fingerhut, Gettington, Gold Violin, Haband, Norm Thompson, Old Pueblo Traders, Sahalie, Tog Shop and WinterSilks. Complementing each brand is a large selection of merchandise with payment options that provide customers with the flexibility of paying over time. Bluestem Group is headquartered in Eden Prairie, MN. For additional information visit the Bluestem Group website at www.bluestem.com.
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CONTACT: Investor Relations:
KEYWORD: UNITED STATES NORTH AMERICA MINNESOTA
INDUSTRY KEYWORD: DEPARTMENT STORES DISCOUNT/VARIETY ONLINE RETAIL HOME GOODS RETAIL FASHION
SOURCE: Bluestem Group Inc.
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PUB: 10/04/2018 12:11 PM/DISC: 10/04/2018 12:11 PM