Settlement announced for KY service members targeted by USA Discounters

FRANKFORT, Ky. (WTVQ) – On Tuesday, Attorney General Andy Beshear announced that Kentucky service members will share nearly $1 million dollars in restitution after a settlement resolving claims that USA Discounters preyed on service members with deceptive trade practices.

The suit alleged that USA Discounters sold overpriced items at high interest rates and used the military’s payroll deduction system to guarantee payment. Allegations involve the company engaging in abusive tactics when collecting on consumer debts, even contacting service members’ chains of command and causing some service members to lose security clearances or face demotions.

A total of 592 Kentuckians will receive a portion of the $922,041 in restitution from the $95.9 million nationwide settlement.

USA Discounters, also doing business as USA Living and Fletcher’s Jewelers, sold furniture, appliances, televisions, computers, smart phones, jewelry and other consumer goods principally on credit.

USA Discounters had no locations in Kentucky, but had a location in Clarksville, Tennessee near Fort Campbell. USA Discounters closed its stores in the summer of 2015 before later declaring bankruptcy.

USA Discounters typically marketed to members of the military and veterans, advertising that military, veterans and government employees would never be denied credit for goods purchased from the retailer.

Under the agreement, USA Discounters agreed to write off all accounts with balances for service members whose last contract was dated June 1, 2012 or earlier, and correct the negative comment from the company on those service members’ credit reports. In Kentucky, it’s estimated that 260 service members will receive a portion of an estimated $865,000 for this provision in the agreement.

Also, USA Discounters will apply a $100 credit to all accounts whose contracts were dated after June 1, 2012, which were not discharged in bankruptcy, and correct the negative comment from the company on credit reports. In Kentucky, it’s estimated that 327 Kentucky service members fall into this category for a total of nearly $32,700 in restitution.