The state attorney general has filed a lawsuit against USA Discounters for violations of the Colorado consumer lending laws.
The company, according to the complaint from Cynthia Coffman, was selling consumer goods and services on credits from two locations in Colorado Springs — focusing heavily on credit transactions with members of the military and their families, with stores located close to Fort Carson and Peterson Air Force Base.
The lawsuit alleges that USA Discounters, also known as USA Living and Fletcher’s Jewelers, had already received complaints about its credit practices — accusations of charging excess fees, improper late fees, failure to provide a mandatory notice of right to cure a default and extending additional credit on closed accounts without a new or refinanced loan agreement. The company did not correct the deficiencies, despite an agreement with the attorney general’s office.
“Our military service members are susceptible to scams particularly while serving away from home and we must take aggressive action to protect them. We must curb the business practices of companies targeting service members and their families for illegal lending practices,” Coffman said.
According to the Attorney General’s complaint, USA Discounters was in the business of selling consumer goods and services on credit from its two locations in Colorado Springs. The complaint alleges that the defendant focused heavily on credit transactions with members of the military and their families, often locating its stores in close proximity to large military bases, such as Fort Carson Army Base and Peterson Air Force Base in Colorado Springs. The exam also revealed that USA Discounters was filing suit against Colorado-based service members in Virginia, instead of in Colorado,a s required under the law.
The complaint seeks consumer restitution, a permanent injunction from filing suits against Colorado consumers in foreign jurisdictions and other penalities, according to the AG’s office.