Target is in hot water again.
This time, a court has issued a temporary restraining order on the company’s new policy of limiting credit card purchases to $500 per month, after a customer sued.
According to the court filing, the new policy “violates a number of consumer protections including the right to privacy and equal treatment under the law.”
Target did not immediately respond to a request for comment from Business Insider.
Target’s new credit card limit will affect people in their 30s and 40s, according to the filing.
The company did not provide any details on how many customers affected were in the affected categories, but a source told the news site that about one in five customers in those age groups will be affected.
That could mean a lot of customers who would have otherwise been able to take advantage of the new card limit could not.
The lawsuit stems from a woman in New York City, who filed the lawsuit after receiving a $1,500 bill from Target that she said was “not legitimate.”
Target has since been forced to provide a $200 rebate to the woman.
According the court filings, the customer had already used the card and would have had access to the full $500 of the credit card if it had been accepted.
She also filed a lawsuit against Target and other retailers alleging that Target “created a new consumer protection program which was not intended to protect customers from fraud and to discriminate against its customers based on creditworthiness,” as well as claiming that Target was “unnecessarily and unjustly excluding eligible customers from the benefit.”
Target’s decision to limit the amount of credit cards customers can use has been in place for at least a year, and has been criticized by consumer advocates.
In July, a consumer advocacy group called Target’s credit card policy “an attempt to avoid consumer responsibility for fraud,” as reported by USA Today.
The organization also noted that the policy was in violation of consumer protection laws, including the Fair Credit Reporting Act.
In September, Target announced that it was expanding its credit card programs, and said it would start using the credit cards of people with a “preferred” credit card.
“The new credit cards will be issued to customers in their chosen credit card categories based on their creditworthiness and their payment history,” Target said at the time.
The new cards will also allow customers to “apply for credit and get approved in the same way they apply for a car loan,” the company said.
It also added that customers who do not have a credit history will still be able to apply for credit on their chosen card, but it will take up to 30 days to process the application.
Consumers with a pre-existing credit history may be able see how their credit is progressing.
It’s unclear how many credit card accounts Target is limiting customers from using.
Some customers may not be able access the new cards.
According a statement to Business Insider, Target has been offering new cards since March, and the company has “always taken the best practices of credit reporting agencies and credit bureaus seriously.”
However, “the new cards do not meet our rigorous credit reporting standards, and we have been told by some credit reporting companies that they do not follow the same credit reporting guidelines as Target,” the statement continued.
It is not yet clear how many people have been affected by the new credit limit.