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Attorney General Eric Schneiderman announced Wednesday that Freedom Stores, the now-defunct retailer and financing firm based in Norfolk, Virginia, must pay $540,000 for destroying the credit of hundreds of state military members.
The retailer deceptively sold goods to more than 250 New York soldiers and their families at inflated prices and locked them into revolving credit card agreements with undisclosed fees and high interest rates; then aggressively pursued collection on the accounts.
Schneiderman says the settlement money will be used to zero out the accounts with balances up to $8,600, eliminate any judgments and clear negative credit reports.
Freedom Stores largely ceased business operations in 2015. The case is one of a group of military-related cases pursued by the A.G.’s office.