CFPB v. Reliant

On September 13, 2024, the Consumer Financial Protection Bureau (CFPB) filed a complaint against Reliant Holding Inc. and its CEO, Robert Kane, accusing them of deceptive practices and dark patterns related to their credit card program. The company targeted financially vulnerable consumers with misleading advertising, making them believe their credit card could be used broadly, when in fact it was limited to purchases at Reliant's online store, the Horizon Outlet. Reliant also charged illegal fees, including monthly membership fees of up to $24.99, exceeding legal limits under the Truth in Lending Act. Consumers faced significant difficulties canceling memberships, despite promises of easy refunds. Between 2017 and 2021, nearly 900,000 consumers were enrolled, with 93% never using the credit but paying over $45 million in fees. The CFPB is seeking a court order to halt these practices and provide restitution to affected consumers.