Harris Jewelry Will Pay Refunds and Stop Loan Collections to Settle Predatory-Lending Charges

admin July 21, 2022

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Harris Jewelery, a now-closed jewelery retailer, has made millions of dollars in refunds, saying government officials used high-interest loans to sell high-priced boring things to prey on military families. The Federal Trade Commission will suspend loan collection in a settlement agreement announced Wednesday. Trade Commission and 18 State Attorney Generals.

According to prosecutors, the company runs a small chain store near the military base, specializing in selling jewelery and souvenirs for service members, and buyers were often in debt. The company also promised to donate revenue from some items to charity, but made false allegations, including a failed follow-through, they said.

“Today’s actions will help thousands of service members recover after the victims of Harris Jewelery’s plans,” said Letitia James, New York Attorney General. Please note that their actions are unacceptable. “

Harris jewelry Closed last year.. The settlement will require the company, based in Hauppauge, NY, to suspend the collection of $ 21 million in loans still held by its 13,000 service members. You will also need to refund approximately $ 13 million to the 46,000 people who paid the “Lifetime Protection Plan” at the time of purchase. This is an add-on that seems to be an option, but it is often added without the buyer’s awareness.

Those eligible for compensation will receive an email and letter regarding the settlement agreement.

Harris Jewelery, which did not approve or deny the allegations, said in a written statement that it would not reopen the store. The settlement “solves these issues in the best interests of all stakeholders,” the company said.

Predatory lending to military members is an area of increasing concern for regulators and oversight agencies. The stable salary of soldiers and the economic naivety of many young recruits are a powerful temptation for advertisers. James’ office cited Harris Jewelery’s “Mothers Medal of Honor” necklace as an example of that tactic. The company bought items from wholesalers for less than $ 78 and sold them for $ 799. Due to taxes, fees and protection plans, many buyers have paid close to $ 975 in total.

When a buyer delinquently paid, Harris Jewelery reported the delinquency to a credit bureau, damaging the customer’s credit score. As part of Wednesday’s settlement, the company agreed to instruct credit bureaus to remove these negative entries.