CHICAGO (Legal Newsline) -
USA Discounter Ltd. agreed to a settlement with Illinois and 49 other states
for allegations of misleading U.S. service members into expensive financing for
overpriced consumer goods, Illinois Attorney General Lisa Madigan recently announced.
Madigan said $1.3 million in restitution
will be distributed to Illinois consumers through financing credits and loan
wipe-outs. The restitution will benefit more than 500 active Illinois service
members and veterans.
company exploited military service members with their predatory pricing and
credit scheme,” the attorney general
settlement will pay back money to the members of our military who shouldn’t have had to pay these exorbitant amounts in the
According to the original
complaint filed by Madigan and the other 49 attorneys general, USA Discounters
sold overpriced household gifts at high interest rates to military members. The
company allegedly specifically targeted the military by using the military
allotment system, which automatically distributes money from an active-duty
service member’s pay under certain conditions.
USA Discounters, to settle
the case, will distribute more than $95.9 million nationally in restitution. USA
Discounters will send notice via email or mail to allegedly affected customers.