The Consumer Financial Protection Bureau has reached an agreement with USA Discounters Ltd. worth $400,000: $350,000 in refunds to military borrowers who were deceived by the company and a $50,000 civil fine.
The Virginia-based company finances the purchase of furniture, bedding, electronics, and appliances at its chain of stores located near military installations. It is accused of tricking service members into paying fees for legal protection services that enlisted persons already enjoy and also for getting them to pay for services that USA Discounters failed to deliver.
"Today we shut down USA Discounter's fee scam that was designed to exploit unsuspecting servicemembers," said CFPB director Richard Cordray. "Targeting military service members with scams disguised as legal benefits is unconscionable, and we will not allow this injustice to continue."