Colorado Attorney General’s Office settled two lawsuits against lenders who targeted military members by charging interest rates higher than Colorado’s maximum and using abusive collection techniques. Lenders must pay more than $3.9 million to settle the claims.
The lawsuit alleged that the Virginia-based lenders — , as well as USA Discounters doing business as USA Living and Fletcher’s Jewelers — attempted to use out-of-state banks to skirt Colorado interest laws.
Freedom Furniture and USA Discounters each had a store in Colorado Springs with roughly 3,200 and 2,000 Colorado consumers, respectively, according to a spokeswoman for the attorney general. Fletcher’s Jewelers had two stores in Colorado, one of which was also in Colorado Springs.
When consumers couldn’t pay, the lawsuit claims lenders would use abusive collection techniques, such as contacting a commanding officer of military members who owed debts. The lenders would even if the transaction was made in Colorado.
The attorney general’s office filed against Freedom Furniture and USA Discounters in 2015. Jolie Ann Mead, an administrator with the attorney general’s office, said the $3.9 million will come in multiple forms, including debt relief. Some will go to the attorney general’s office.
Affected consumers do not have to file for claims. Instead, they will receive written notice of how their accounts were affected and how they will be compensated.
