Texas companies must refund Iowans who were scammed - KWWL - Eastern Iowa Breaking News, Weather, Closings

Texas companies must refund Iowans who were scammed

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DES MOINES (AP) -

The Iowa attorney general's office says a judge has ordered two companies to give more than $2.7 million in refunds to Iowa customers with buying club memberships.

Polk County District Court Judge Richard Blane approved a consent judgment Thursday against JC Penny Direct Marketing Services and Stonebridge Benefit Services, both of Plano, Texas. Iowa Attorney General Tom Miller filed a lawsuit in August 2011 and added JC Penny Direct Marketing Services in March 2013.

The lawsuit contended the companies violated Iowa law by enrolling thousands of JC Penny customers into a program they weren't aware of, and then repeatedly charging their credit cards.

The companies must pay $2.7 million to customers and another $164,375 to the state for consumer fraud enforcement.

The companies agreed to the settlement but denied liability.

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