NEWS | SAN DIEGO

Wal-Mart reaches settlement over credit card dispute

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Wal-Mart Stores Inc. agreed to a pay $89,000 in penalties to settle a consumer protection dispute filed by the San Diego district attorney's office involving the company's credit card applications.

Prosecutors claimed Wal-Mart employees were misrepresenting to consumers that they had been “preselected” for a Wal-Mart credit card although the consumer had not been prescreened for acceptance. The complaint also alleged the company failed to adequately instruct its employees in proper credit card application procedures.

As part of the settlement agreement, Wal-Mart does not admit liability.

The San Diego district attorney’s office prosecuted the case on behalf of the people of California. The case stemmed from employee complaints at the La Mesa Walmart store in 2010. The case was investigated by the district attorney’s office.

Under the terms of the stipulated judgment, Wal-Mart is required to train employees regarding proper credit card application procedures, and to refrain from misrepresenting a consumer’s status as a credit card applicant.

Wal-Mart cooperated in the investigation and resolution of the case.

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