NORFOLK, Va. (AP) — A retailer based in Norfolk that sold furniture and other products on credit to military families has agreed to a settlement that will result in nearly $100 million of forgiven debt and restitution.
Virginia Attorney General Mark Herring said in a statement Friday that the settlement with USA Discounters includes more than $10.5 million to over 8,000 Virginia customers. The settlement includes 49 states and the District of Columbia. Though the company settled, it denies any wrongdoing according to the agreement.
State officials alleged that USA Discounters engaged in deceptive advertising and abusive debt collection practices. Certain consumers will have remaining debt wiped out; others will get a $100 credit. The settlement’s terms also include a $40 million penalty.
USA Discounters closed its stores in 2015 before later declaring bankruptcy.
Copyright 2016 The Associated Press. All rights reserved. This material may not be published, broadcast, rewritten or redistributed.