Bluestem Group Announces Select Operating Subsidiaries Reach Settlement with BCFP

EDEN PRAIRIE, Minn.–(BUSINESS WIRE)–Bluestem Group Inc. (“Bluestem” or the “Company”) (OTCMKTS:BGRP) today
announced that its wholly owned subsidiaries, Bluestem Brands, Inc.,
Bluestem Enterprises, Inc. and Bluestem Sales, Inc., agreed to a
settlement with the Bureau of Consumer Financial Protection (“BCFP”).
Today’s settlement resolves the BCFP’s allegations regarding Bluestem’s
prior practices with respect to the forwarding of payments Bluestem
received on already-sold consumer credit accounts (“direct pays”) to
debt buyers. The terms of the settlement include a $200,000 civil money
penalty as well as various elements of injunctive relief related to
Bluestem’s direct pay and debt sale practices. Aside from the direct pay
allegations, the BCFP has not informed Bluestem of any other allegations
that it believes could lead to legal action.

Lisa Gavales, a member of Bluestem’s Board of Directors and interim
Chief Executive Officer of the Company, remarked, “We cooperated with
the BCFP throughout the investigation, including providing timely
responses to all of its requests, and we are satisfied with the outcome
of the matter. Prior to the BCFP’s investigation, as part of the regular
operation of our compliance management program, we self-identified the
facts underlying the direct pay issues and began our own remediation of
those issues. In fact, the Company has already implemented most of the
injunctive provisions of the settlement and we do not anticipate any
significant impact on our operations. Bluestem has long been committed
to treating our customers respectfully and fairly, providing them with a
broad array of quality products, and making credit offers that are fair
and transparent. As an ongoing practice, we continuously evaluate and
mature our compliance management function, striving to comply with all
applicable laws, and we will continue to do so in the future.”

About Bluestem Group

Bluestem Group Inc. is a holding company whose businesses include
Bluestem Brands, a national, multi-brand, online retailer of a broad
selection of name-brand and private label general merchandise serving
the boomer and senior demographic, generally considered age 50 and over,
and low- to middle-income consumers over all age demographics through 13
retail brands that include: Appleseed’s, Bedford Fair, Blair, Draper’s &
Damon’s, Fingerhut, Gettington, Gold Violin, Haband, Norm Thompson, Old
Pueblo Traders, Sahalie, Tog Shop and WinterSilks. Complementing each
brand is a large selection of merchandise with payment options that
provide customers with the flexibility of paying over time. Bluestem
Group is headquartered in Eden Prairie, MN. For additional information
visit the Bluestem Group website at www.bluestem.com.

Contacts

Investor Relations:
ICR
Jean Fontana
IR@bluestembrands.com

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