Reliant Holdings, Inc. d/b/a Horizon Card Services; and Robert Kane
On September 13, 2024, the Bureau filed a lawsuit against Reliant Holdings, Inc. (Reliant), d/b/a Horizon Card Services and Robert Kane, its sole shareholder, owner, and chief executive officer. Reliant offered consumers nationwide enrollment in a program called the Horizon Card Services membership in exchange for periodic fees. The primary product included with the membership was an unsecured, open-end line of credit, typically starting at $500 or $750. Until at least January 2021, Reliant often charged fees of at least 60% of the credit limit by charging consumers around $24.95 a month or $299.40 annually for the membership. Although marketed as a regular credit card, the line of credit could be used only to purchase goods from Reliant’s online store, the Horizon Outlet. The outlet had a limited selection of overpriced or off-brand goods. Between 2017 and 2021, only 6% of consumers ever used their cards at the outlet. Despite promises that consumers could obtain a full refund in “less than a minute,” Reliant routinely made consumers endure a series of offers before canceling and refused to provide full refunds unless consumers threatened to seek relief from their bank or the Better Business Bureau. The Bureau alleges that Reliant and Kane engaged in deceptive acts and practices in violation of the Consumer Financial Protection Act of 2010 (CFPA) by marketing the membership as a regular credit card that could be used anywhere that credit cards are accepted, when in fact it was a membership program with a credit card that only could be used to purchase goods from the Horizon Outlet; and for falsely promising that consumers could obtain a full refund in “less than a minute.” The Bureau further alleges that Reliant and Kane engaged in abusive acts and practices in violation of the CFPA by taking unreasonable advantage of customers’ inability to cancel membership enrollment and obtain refunds. The Bureau also alleges that until at least January 2021, Reliant violated the Truth in Lending Act and its implementing regulation, Regulation Z, by unlawfully requiring consumers to pay more than 25% of the credit limit during the first year of account opening. The Bureau seeks, among other things, injunctive relief against Reliant and Kane to prevent future violations and monetary relief in the form of redress to consumers and the imposition of civil money penalties.