Advertisement

You will be redirected to the page you want to view in  seconds.

N.Y. gets $9.5M over soldier debt fraud

Nov. 12, 2012 - 11:16AM   |   Last Updated: Nov. 12, 2012 - 11:16AM  |  
  • Filed Under

ALBANY, N.Y. — New York state Attorney General Eric Schneiderman has reached a $9.5 million settlement with retailer SmartBuy and its affiliated companies over debt fraud aimed at soldiers.

Schneiderman says SmartBuy operated from a kiosk and small storefront at Salmon Run Mall near the Fort Drum Army post and ruined the credit of thousands of soldiers through fraudulent charges. The settlement, along with an earlier one with SmartBuy, wipes out $12.9 million in debt for more than 4,000 soldiers nationwide.

Schneiderman said Monday that SmartBuy salespeople talked soldiers into payment contracts with hidden fees and exorbitant interest.

Fayetteville, N.C.-based SmartBuy closed its local operations after Schneiderman demanded it stop deceptive practices and reimburse soldiers.

A lawyer for the company says it was satisfied with the settlement that protects soldiers' credit ratings.

Answers by RallyPoint

Join trending discussions in the military's #1 professional community. See what members like yourself have to say from across the DoD.

More In News

Start your day with a roundup of top defense news.

VA Home Loan
Rates

Search By:

Product Options:
Zip Code:

News for your in-box

Sign up now for free Military Times E-Reports. Choose from Money and Education. Subscribers: log in for premium e-newsletters.


This Week's Army Times

This Week's Army Times

'Too many overweight soldies'
Raters are fudging facts for senior NCOs, promotion bard says

Subscribe for Print or Digital delivery today!

Classifieds
MilitaryTimes Green Trusted Classifieds Looking to buy, sell and connect on Military Times?
Browse expanded listings across hundreds of military installations.
Faces of valorHonoring those who fought and died in Operations Iraqi Freedom and Enduring Freedom.
hall of valorThe Hall of Valor is a searchable database of valor award citations collected by Doug Sterner, a Vietnam veteran and Military Times contributing editor, and by Military Times staff.
Woman who cried rape
(3 replies)
   Last Post: TJMAC77SP
        May 3, 2014 1:32 PM
   Last Post: garhkal
        May 1, 2014 5:03 PM
Cliven Bundy
(45 replies)
   Last Post: Chief_KO
        Apr 26, 2014 9:49 AM
Handbooks

All you need to know about your military benefits.

Benefits handbook

Guard & Reserve All you need to know about the Guard & Reserve.

guard and reserve handbook