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Harris Originals will forgive approximately $15 million in debt and return payments totaling nearly $11 million after they used deceptive marketing tactics to lure servicemembers and veterans to their financing program, according to the Maryland Attorney General.
This joins a multistate agreement that resolves the allegations that the jewelry retailer defrauded the military servicemembers.
Harris Originals would lure the victims in by falsely claiming that investing in the program would improve their credit scores. Instead, they would end up with the servicemembers obtaining high-interest loans on overpriced and poor-quality jewelry, according to the AG.
The company had a practice of targeting recent recruits with lower pay grades with the “Harris Program," officials said. The program falsely represented that soldiers with poor or no credit could improve their credit scores by financing their purchases.
The purchase of the jewelry left the servicemembers with thousands of dollars worth of debt, worsening their credit scores, the AG noted. Harris Jewelry also allegedly added "Protection Plans" to their sales at an added cost without consent, which is an illegal practice.
In addition to the debt forgiveness and loan refunds, Harris Jewelry also agreed to dissolve its businesses.
Harris Jewelry has agreed to forgive existing debts owed by service members, totaling around $15 million, including $128,995.57 owed by 102 Maryland servicemembers.
The company has also agreed to pay full restitution to servicemembers who purchased jewelry protection plans, which adds up to nearly $11 million.
About 274 Maryland service members will be entitled to refunds totaling $63,399.67.
“Harris Jewelry targeted and preyed upon hundreds of Maryland servicemembers, locking them into protection plans and financing programs without their approval,” said Attorney General Brian Frosh said in a statement. “The agreement announced today shuts Harris down and returns tens of thousands of dollars owed to Maryland consumers.”
Eligible consumers will be contacted by a Claims Administrator. Consumers with questions may also contact the Attorney General’s Consumer Protection Division at 410-528-8662 or 888-743-0023.
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