Cabela's has agreed to pay nearly $10.4 million for “alleged unfair and deceptive practices” of its credit card operation as part of a settlement with federal regulators. It also agreed to reform its credit card practices. The Federal Deposit Insurance Corporation announced the agreement with Cabela’s on last week.


According to the settlement, World's Foremost Bank, Cabela's credit card operation, will pay $10.1 million in restitution and a $250,000 civil money penalty. The retailer did not admit wrongdoing.


The FDIC said it determined that WFB did not operate its credit card programs “in an appropriate manner with regards to certain overlimit fees, credit line decreases, minimum payments due, late fees, penalty interest rates, notices to customers, and collection practices.


In agreeing to the issuance of the Consent Order, World's Foremost Bank said it “does not admit nor deny any liability.”