Colorado Attorney General Cynthia Coffman filed a lawsuit on July 17 against USA Discounters claiming the company targeted military members by offering goods and services on credit. | Shutterstock

DENVER (Legal Newsline) - A Colorado company is being sued for allegedly targeting military members and their families by offering goods and services on credit, said Colorado Attorney General Cynthia Coffman on July 17.

USA Discounters, which also does business under the names USA Living and Fletcher's Jewelers, claims the company violated consumer lending laws.

The lawsuit said USA Discounters set up its stores close to large military bases including Fort Carson Army Base and Peterson Air Force Base in Colorado Springs. The business focused primarily on credit transactions with military personnel and their families.

“Our military service members are susceptible to scams particularly while serving away from home and we must take aggressive action to protect them,” Coffman said. “We must curb the business practices of companies targeting service members and their families for illegal lending practices.”

An examination of USA Discounters found “significant problems” with the company's credit practices, which included charging excess fees, improper late fees, and extending more credit to closed accounts without a new loan agreement. The company also allegedly failed to give customers a mandatory notice of right to cure default, Coffman said.

This is the second lawsuit filed by Coffman's office over a business targeting military families. The other lawsuit involved Freedom Stores, and the cases are similar, Coffman said.

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