'Sham plans': Former and current Bragg soldiers defrauded by Harris Jewelry can find relief

Former and current servicemembers defrauded or deceived by a jewelry store that operated stores across the country, including in Fayetteville, can apply for refunds, North Carolina Attorney General Josh Stein announced this week.

In a news release Monday, Stein’s office said he, other attorneys general and the Federal Trade Commission reached a $32.2 million multistate settlement with Harris Jewelry.

The New York-based retailer operated a store at Cross Creek Mall in Fayetteville near Fort Bragg and stores near military installations across the country including in Jacksonville near Camp Lejeune.

In May 2021, Harris Jewelers announced it was permanently closing stores because of the COVID-19 pandemic, and all stores were permanently closed by July 2021.

The store was originally slated as a tenant for Fort Bragg’s future Freedom Crossing Shopping Center but has since been removed from the developer’s website.

The New York Attorney General’s Office originally filed a suit against Harris Jewelry in 2018 accusing the store of predatory and deceptive practices and illegal lending to finance sales to active-duty service members.

The lawsuit is the result of an ongoing multi-state investigation co-led by New York and Tennessee.  A group of 18 states, including North Carolina, investigated the company’s sales practices and the Federal Trade Commission filed a complaint against Harris Jewelry in July.

Previously:North Carolina attorney general says jeweler targed military members

For subscribers:Fort Bragg adds 3 more businesses to off-limits list for soldiers

According to the complaint, the company entered into retail installment contracts with more than 40,000 service members since Jan. 1, 2015, and that 90% of the company’s sales were to service members through credit transactions that Harris Jewelry financed.

According to the FTC’s 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 complaint alleged that Harris Jewelry charged consumers for a protection plan that covered ring and watch sizing, battery replacement and repairs without disclosing that the plan was optional.

The FTC said Harris Jewelry also “failed to include written disclosures in its retail installment contracts as required by the Truth in Lending Act and Military Lending Act.”

The suit alleged the amount of credit available — which was determined by Harris Jewelry — was based upon the service member's branch of service and length of time remaining on active duty.

Specifically, it alleges active-duty service members are targeted because of their likelihood to pay the debt.

The Uniform Code of Military Justice requires service members to maintain financial solvency as a prerequisite for security clearances and job assignments.

The jeweler previously called the allegations inaccurate and “baseless."

The company’s website touted that it was founded in 1955 by Jerome L. Harris, a World War II Marine Corps veteran.

Under the agreements of the settlement, Harris Jewelry was required to stop collecting debt, provide refunds for purchased protection plans, delete negative credit entries and shut down operations.

“I urge our servicemembers to take action now to win back money that was unlawfully taken from them and clear any negative reports from their credit records,” Stein said Monday. “Businesses cannot trick customers into purchasing sham plans that push them into debt."

According to Stein’s news release and Harris Jewelry’s website, former customers who were sold lifetime jewelry and watch protection plans, knowingly or unknowingly, can apply for a refund at www.harrisjewelry.com.

Stein said consumers who owed payments to Harris Jewelers can stop paying, and the balance has been zeroed out.

The attorney general also encouraged consumers to check credit reports and email harrissettlement@ncdoj.gov if they have a negative consumer report or judgment because of Harris Jewelry.

Staff writer Rachael Riley can be reached at rriley@fayobserver.com or 910-486-3528.

This article originally appeared on The Fayetteville Observer: Bragg military families misled by Harris Jewerly can seek compensation