Delaware Part of 50-State Settlement With Retailer That Targeted Military Service Members

The Delaware Department of Justice Consumer Protection Unit announced a settlement with retailer USA Discounters, also doing business as USA Living and Fletcher’s Jewelers, along with 49 other state attorneys general, to resolve the states’ claims of deceptive trade practices against the company. An estimated $203,000 will be paid to Delawareans who were USA Discounters customers as part of the settlement.

USA Discounters sold consumer products, including furniture, appliances, televisions, computers, smart phones, jewelry and other consumer goods principally on credit. 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. USA Discounters closed its stores in the summer of 2015 before later declaring bankruptcy.

The Attorney General offices alleged that USA Discounters engaged in unfair, abusive, false and deceptive acts and practices. These allegations include that, in collecting on consumer debts, USA Discounters engaged in abusive tactics when service members got behind on payments, including contacting service members’ chains-of-command, and causing some service members to lose security clearances and face demotions. The states also alleged that USA Discounters only filed its lawsuits in a few Virginia jurisdictions, no matter the service member’s location, deployment status, or residence. In addition, the states alleged USA Discounters sold overpriced household goods at high interest rates, often using the military allotment system to guarantee payment. These unlawful business practices, the states claim, were secured through misrepresentations and omissions in advertising, during the loan’s origination, and during the collection process.

USA Discounters agreed to provide relief to certain former and current customers. The total estimated value to consumers for these restitution measures is approximately $95.9 million, primarily benefiting active and veteran service members. Namely, USA Discounters agreed to:

  • Write off all accounts with balances for customers whose last contract was dated June 1, 2012 or earlier, and correct the negative comment from the company on those consumers’ credit reports;
  • 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 those consumers’ credit reports;
  • Write off all judgments not obtained in the correct state, and correct the negative comment from the company on those consumers’ credit reports;
  • Credit all judgments that were obtained in the correct state against members of the military with a credit equal to 50 percent of the original judgment amount;
  • Pay a penalty of $40 million to the states should the bankruptcy allow. This $40 million penalty will be subordinated to all secured, administrative, priority, and unsecured claims that are allowed in the bankruptcy case, and it is not expected the company will have the resources to pay this penalty.

The value of the restitution to consumers in Delaware is approximately $203,000. This settlement is expected to impact 75 state residents.


The Delaware Commission of Veterans Affairs announces Veterans Employment Center

Dover – The Delaware Commission of Veterans Affairs announced the launch of a new integrated employment tool to connect veterans and service members with employers, and to help translate military skills into the civilian workforce. The Veterans Employment Center, an integrated, online tool connecting veterans, transitioning service members and their spouses with both public and private-sector employers, is the result of an interagency effort to improve, simplify and consolidate the current array of employment resources for veterans. Additionally, this will provide one comprehensive database of resumes for employers who are seeking to leverage the skills and talents of veterans, service members, and their spouses.

The new online resource, called the Veterans Employment Center, is the first interagency tool to bring a wealth of public and private job opportunities, a resume-builder, military skills translator and detailed career and training resources together in one place. In connection with the First Lady and Dr. Biden’s Joining Forces initiative, the Department of Veterans Affairs worked with employers, the Departments of Defense, Labor, Education, and the Office of Personnel Management to design and develop the site and incorporate features of existing online employment tools within government.

The result is an integrated solution providing veterans, transitioning service members, and military spouses with the tools they need to connect to employers. With this tool, employers will be able to search and view Veteran, Service Member, and spouse resumes in one comprehensive location.

The Veterans Employment Center will provide employers with access to a targeted pool of resumes from veterans and transitioning service members, allowing them to search resumes to identify veterans with skill sets applicable to civilian employment at their organization, and to track progress towards reaching their veteran hiring goals. Resumes are visible to all employers with an active LinkedIn or Google profile. To prevent spam, an applicant’s name and email address are redacted and only visible to employers verified by the VA as registered companies with the IRS. The site is also built using open data and an open application programming interface to attract private-sector innovation.

The Veterans Employment Center can be found at: https://www.ebenefits.va.gov/ebenefits/jobs

For a tutorial video on how to use the Veterans Employment Center, please visit:
https://www.youtube.com/watch?v=VWfhI-eSoWk.

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