West Virginia Attorney General Patrick Morrisey joined 49 other states in announcing a settlement with USA Discounters, a retailer also doing business as USA Living and Fletcher’s Jewelers.
USA Discounters principally sold various items on credit, while advertising it would never deny credit to military members, veterans and government employees.
The settlement resolves claims of deceptive trade practices against the company, while providing more than $440,000 in debt cancellation and credits to affected consumers in West Virginia.
USA Discounters, which sold furniture, appliances, televisions, computers, smart phones, jewelry and other consumer goods, closed its stores in summer 2015 and later declared bankruptcy.
The attorneys general alleged USA Discounters engaged in unfair, abusive, false and deceptive practices, including its use of the military’s allotment system to guarantee payment for its overpriced household goods and high interest rates.
They further alleged the company’s debt collection activities included abusive tactics and constantly contacting the service members’ chain-of-command, practices which caused some service members to lose security clearances and face demotions. It also filed lawsuits in select jurisdictions regardless of the service member’s location or residence.
It is estimated the multistate settlement will provide $95.9 million in restitution measures to consumers, primarily benefiting active and veteran service members.
In West Virginia, it is estimated 126 consumers will receive $433,916 in debt cancellation. Another 45 consumers will receive credits of approximately $6,551 combined.
