Zoeller: Indiana, 49 States Reach $85M Settlement With USA Discounters For Deceptive Sales Practices, Misleading Advertisements Targeting Veterans
INDIANAPOLIS, Ind. – Indiana consumers will receive nearly $800,000 in restitution as a result of an $85 million multi-state settlement reached with USA Discounters, also doing business as USA Living and Fletcher’s Jewelers, for allegations of deceptive consumer sales practices.
USA Discounters sold consumer goods on credit targeting members of the military and veterans. The retailer advertised that military veterans and government employees would not be denied credit for goods purchased from them.
The Attorney General alleged that USA Discounters engaged in unfair, abusive, false and deceptive acts and practices. These allegations include that, in collecting consumer debts, USA Discounters engaged in abusive tactics and caused some service members to lose security clearances and face demotions.
In addition, USA Discounters allegedly sold overpriced household goods at high interest rates, often using a military allotment system, which guaranteed payment to the retailer. These unlawful business practices occurred through misrepresentations of the loan’s origination and during the collection process.
In 2015, USA Discounters closed its stores and later declared bankruptcy.
“Indiana consumers, including veterans and members of our military, are still living with the hardships caused by USA Discounters’ deceptive business tactics. It is our responsibility to protect public interests and sanction retailers who take advantage of consumers and the men and women who serve this country. The action taken by our office supports that important effort,†Zoeller said.
USA Discounters agreed to provide relief to certain former and current customers. The total amount in debt forgiveness and restitution to Indiana consumers, which includes active and veteran service members, is $797,129.80.
The settlement requires USA Discounters to:
- Write off all accounts with balances for customers whose last contract was dated June 1, 2012 or earlier and correct the negative comment from the company on those consumers’ credit reports;
- Apply a $100 credit to all accounts whose contracts were dated after June 1, 2012, which were not discharged in bankruptcy;
- Write off all judgments not obtained in the correct state;
- Credit all judgments that were obtained in the correct state against members of the military with a credit equal to 50 percent of the original judgment amount;
- Pay a penalty of $40 million to the states.
Attorney General Greg Zoeller thanked Deputy Attorney General Tom Irons for his work on this case.
