Target Settlement Over Deceptive Marketing of its Debit Card

Target Settlement Over Deceptive Marketing of its Debit Card

Target has reached a settlement worth $8.2 million over claims that the retail giant deceptively marketed its store debit cards. Class Members in the settlement include those Target debit card holders who incurred at least one returned payment fee between June 29, 2012 and Dec. 2, 2019 that was not refunded or waived.

Card holders claim that Target intentionally misrepresents the terms of its Target Debit Card to entice customers into signing up for the card and making purchases that they otherwise would not have.

The card holders claim that Target misleads customers into thinking that the Target Debit Card works like this, as a traditional debit card, but card holders of the Target Debit Card are subjected to insufficient funds fees. To make matters worse, the customers claim that Target does not notify the cardholder’s bank that a fee has been charged until days after the purchase was made.

Class Members are eligible to collect a pro rata cash payment based on the amount in returned payment fees. Class Members who have not yet paid a returned payment fee will reportedly be able to receive debt reduction of 25 percent.

You can find more information on the settlement website here.

Disclosure: Miles to Memories has partnered with CardRatings for our coverage of credit card products. Miles to Memories and CardRatings may receive a commission from card issuers.

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