Harris Jewelry, which agreed to a $34.2 million settlement to resolve allegations that it targeted and defrauded military servicemembers and veterans, must reopen its claims process, a judge has ruled.
The company prematurely shut down its claims portal and thus violated its settlement agreement, the federal judge determined. Harris now must re-notify consumers so they can submit their claims for refunds.
The settlement with the now-defunct national retailer was reached by 18 state attorneys general and the Federal Trade Commission. It required Harris to stop collecting $21.3 million in outstanding debt held by 13,426 servicemembers and to provide $12.9 million in refunds to 46,204 servicemembers who paid for lifetime protection plans. The company closed its stores in 2021.
The new claims process is open for 33 days, starting Nov. 18 and ending Dec. 21.
“With this year’s Veteran’s Day just past us, we are reminded to be vigilant against those who would take advantage of those who have served our country,” Delaware Attorney General Jennings said in a press release. “Harris Jewelry’s conduct was unconscionable. The reopening of the claims portal in this case allows those servicemembers victimized by Harris Jewelry to get a small piece of justice and help ensure the company is held accountable for its actions.”
More from Jennings’s release:
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The Attorney General is encouraging consumers who purchased items from Harris Jewelry and paid for a Lifetime Jewelry and Watch Protection Plan, and have yet to file a claim or previously filed a claim but have not yet heard back from Harris Jewelry, to request a refund via Harris’s website as soon as possible.
In July 2022, the FTC and a group of 18 states took action and stopped the national jewelry retailer from cheating military families with illegal financing and sales practices. According to the complaint, the jewelry company deceptively claimed that financing jewelry purchases through Harris would raise servicemembers’ credit scores, misrepresented that its protection plans were not optional or were required, and added the plans to purchases without consumers’ consent. The company also allegedly violated numerous financial consumer protection laws, including the Military Lending Act.
Under a stipulated order with the FTC and the multistate group, Harris was ordered to stop collecting millions of dollars in debt, provide refunds for purchased protection plans, which could total approximately $10.9 million, issue refunds for overpayments, and assist with the deletion of any negative credit entries pertaining to debt in consumers’ credit reporting files. Harris is also required to complete its shutdown of operations and to dissolve pursuant to applicable state laws, once it meets the obligations of the stipulated order.
The court’s recent action, in response to a request from the FTC and the multistate group, is aimed at allowing consumers fair and sufficient time to file claims for refunds, in response to the 2022 settlement.
