CrimeJul 26, 2022
Suspects Wanted in Arizona Jewelry Store Shooting Apprehended CrimeJul 26, 2022
Harris Jewelry to Pay Millions in Predatory Lending Settlement
The jeweler is accused of defrauding thousands of U.S. military members.
Accused of defrauding U.S. service members through predatory lending practices, Harris Jewelry will pay more than $34 million in a settlement deal announced last week by the Federal Trade Commission and 18 state attorneys general. (Image courtesy of Harris Jewelry’s Facebook page)
Hauppauge, N.Y.—Harris Jewelry will have to pay millions in refunds to customers and stop collecting on loans following a settlement deal announced last week by the Federal Trade Commission and 18 state attorneys general.
The Hauppauge, New York-based retailer, which catered to members of the military and their families, was the focus of an October 2018 complaint from the New York State Attorney General’s office.
The lawsuit alleged the retailer marked up its jewelry between 600 and 1,000 percent and misled service members so they would sign financing agreements with high interest rates.
Similar complaints were made in 17 other states.
The settlement, which extends to all 18 states, requires Harris Jewelry to issue $12.9 million in refunds to more than 46,200 customers who were said to unknowingly have paid for supposedly optional “lifetime protection plans.”
The retailer will also have to cease collections on $21.3 million in loans currently held by more than 13,400 customers.
When customers fell behind on payments, Harris Jewelry reported them to credit agencies, according to the attorney general’s office. Now, under the terms of the settlement, the company will also have to vacate judgments against 112 consumers, totaling more than $115,300, and delete any negative credit entries.
“The settlement, in which Harris Jewelry neither admitted nor denied the allegations, resolves these matters in the best interest of all its stakeholders,” Harris Jewelry said in a statement.
The settlement also requires Harris Jewelry to pay $1 million in total to the 18 states.
New York will receive $150,000, which Attorney General Letitia James will donate to Fort Drum, the largest military base in New York, and the site of a former Harris Jewelry store.
“It’s abhorrent that Harris Jewelry built their business by taking advantage of young servicemembers risking their lives to protect our country,” James said.
“Harris Jewelry claimed to serve and support our troops, but its business practices were entirely self-serving. For years, Harris Jewelry misled military members and saddled them with thousands of dollars of debt.”
The now-shuttered retailer operated on and near U.S. military bases. It closed all of its stores in May 2021 in the wake of the COVID-19 pandemic but still has an online presence.
James’ office said Harris Jewelry violated the FTC Act, the Truth in Lending Act, the Electronic Fund Transfer Act, the Military Lending Act, the Holder Rule, and state laws in connection with jewelry sales and financing to members of the military.
There are three main accusations against the jeweler.
The company is accused of falsely telling customers that financing jewelry through the company would boost their credit scores, which was not true in most cases.
The credit was advanced through the “Harris Program,” an in-house financing plan. While banks usually consider a person’s credit score, income, and other factors, the Harris Program allegedly looked at a servicemember’s branch of service, the amount of time they had remaining on the term of enlistment, and the category of merchandise they purchased.
Harris Jewelry is also accused of misrepresenting its protection plans, claiming in several instances that protection plans were required to finance a purchase when it was actually optional.
Protection plans ranging in price from $40 to $350 were also said to be routinely added to customers’ bills without disclosure. In some cases, the cost of the protection plan allegedly surpassed the wholesale cost of the jewelry.
Lastly, the company allegedly did not provide written disclosures in its retail installment contracts or meet the authorization requirements for contracts required by law.
Its internet and print ads also did not include the required disclosures, as per the Truth in Lending Act, James’ office said.
In addition to these main accusations, the company was also said to sell low-quality goods.
“The jewelry itself was significantly overpriced and poor quality,” said James’ office. “The jewelry was not worth the price, and consumers often reported stones falling out, chains breaking, and the finish fading.”
Harris Jewelry was also accused of using a fake charity drive to draw in customers.
The stores ran an “Operation Teddy Bear” promotion, selling teddy bears dressed in military uniforms, claiming the proceeds would go to Operation Troop Aid, a charity that would send care packages to military members deployed overseas.
The OAG’s investigation found there was no legal contract between Harris Jewelry and Operation Troop Aid.
Operation Troop Aid shut down in July 2018 following an investigation by the FTC and the National Association of State Charity Officials, which looks into charities suspected of falsely claiming to support servicemembers and veterans.
“Today’s action against Harris Jewelry shows that companies that target our country’s servicemembers with false promises and deceptive sales practices will face serious consequences,” said Samuel Levine, director of the FTC’s Bureau of Consumer Protection.
Servicemembers and veterans who entered into predatory financing loans with Harris Jewelry, starting in January 2014, will be eligible for restitution.
Those eligible will receive an email and a letter in the mail with a notification about the agreement.
Attorney General James and the FTC were joined in the agreement by the attorneys general of California, Connecticut, Delaware, Florida, Georgia, Idaho, Illinois, Iowa, Kansas, Louisiana, Maryland, Nevada, North Carolina, Pennsylvania, Virginia, Washington, and Hawaii's Office of Consumer Protection.
Editors' Picks
Sponsored by
CrimeJul 19, 2022
Nehal Modi Convicted of Grand Larceny
IndependentsMay 06, 2021
Harris Jewelry Closes All LocationsMore on Crime
The Latest
CollectionsApr 02, 2025
Bea Bongiasca’s ‘Tarallo’ Collection Expansion Is a ZooThe pieces in “Animali Tarallo” portray animals from stingrays to elephants through portraits and interpretations of their patterns.
MajorsApr 02, 2025
Neiman Marcus’ Dallas Flagship Will Remain Open, For NowParent company Saks Global said the iconic location will be open through the holiday season as it decides what to do with the space.
SourcingApr 02, 2025
Winston’s Collection of Natural Color Diamonds Now on Display in D.C. Ronald Winston, son of Harry Winston, donated the diamonds to the Smithsonian National Museum of Natural History in Washington, D.C.
Brought to you by
The Heart of the Industry: Giving Bench Jewelers the Recognition They DeserveBench jewelers spend years honing their skills, Jewelers of America’s Certification validates their talents.
Policies & IssuesApr 02, 2025
Jewelers of America to Hold Webinar on TariffsThe virtual event will take place April 7 at 3 p.m.
Weekly QuizMar 27, 2025
This Week’s QuizTest your jewelry news knowledge by answering these questions.
Events & AwardsApr 02, 2025
Punchmark to Host Client WorkshopThe educational event will take place in Charlotte, North Carolina, this May.
IndependentsApr 01, 2025
Bergman Jewelers in Omaha Closing After 137 YearsThe independent jeweler first opened its doors in 1888.
Brought to you by
Natural Diamonds Should Mean MoreNatural diamonds mean more than lab-grown, but when every cut is ideal, they all look the same. Customers want more—Facets of Fire delivers.
MajorsApr 01, 2025
QVC Group to Cut 900 Jobs in the U.S.The layoffs come amid the TV shopping channel’s efforts to restructure and focus on live shopping through social media.
Events & AwardsApr 01, 2025
U.S. Antique Shows Adds Fall Show in FloridaThe debut event will take place in Miami’s Coconut Grove neighborhood this fall.
Events & AwardsApr 01, 2025
TJS to Host Discussion on Jewelry Industry’s Labor ShortageThe roundtable will take place May 17 ahead of the trade show’s welcome dinner.
CollectionsApr 01, 2025
Monica Rich Kosann Says ‘Good Grief’ in Peanuts Jewelry CollectionThe “Peanuts x Monica Rich Kosann” collection features the comic strip’s classic vocabulary across 10 bracelet designs.
Recorded WebinarsMar 31, 2025
Watch: What Do We Mean When We Say ‘Recycled’ Gold?Three industry experts dive into the complexities of the material often marketed as an “ethical” alternative for metal in jewelry.
TrendsMar 31, 2025
Amanda’s Style File: Dripping in DiamondsDiamonds are not only one of the most prominent gemstones, but the birthstone for those born in April.
MajorsMar 31, 2025
Lashbrook Expands Into Luxury Golf Gifts With AcquisitionThe Utah-based company known for making wedding bands has acquired Doubloon Golf.
WatchesMar 31, 2025
Bulgari CEO Jean-Christophe Babin Will Also Head LVMH WatchesThe longtime luxury executive led one of LVMH’s watch brands, TAG Heuer, for 12 years before taking over Bulgari in 2013.
SourcingMar 28, 2025
19th-Century Jade Book Now Available in EnglishLotus Gemology founder Richard W. Hughes has translated Heinrich Fischer’s 1880 book “Nephrit und Jadeit” from its original German.
CollectionsMar 28, 2025
Piece of the Week: Löf’s ‘The Valentine’ RingThe ring's design features contrasting lines influenced by work from architecture-inspired photographer Nikola Olic.
SurveysMar 27, 2025
Consumer Confidence Falls in March Amid ‘Gloomy’ OutlookThe Conference Board’s index fell as consumers continued to worry about the impact of tariffs, the labor market, and the price of eggs.
AuctionsMar 27, 2025
300-Year-Old Ring Linked to Witch Trial Judge Goes Unsold at Auction However, two medieval jewels surpassed estimates at Noonans Mayfair’s recent jewelry auction in London.
WatchesMar 27, 2025
Austin Butler Joins Breitling as Brand AmbassadorThe Oscar-nominated actor debuted in the campaign for the new “Top Time B31” collection, which introduced Breitling’s Caliber B31.
SourcingMar 27, 2025
Susan Jacques, Gaetano Cavalieri to Headline 2025 ICA Congress The Congress is scheduled to take place May 19-22 in Brasilia, Brazil.
IndependentsMar 26, 2025
Bailey’s Fine Jewelry Acquires Fellow NC Independent JewelerThe family-owned retailer is the new owner of Morrison Smith Jewelers in Charlotte, North Carolina.
WatchesMar 26, 2025
Bulova Celebrates 150th Anniversary With Art Deco WatchesThe “150 Art Deco” collection features a Miss America timepiece and a pocket watch from the brand’s Archive Series.
MajorsMar 26, 2025
QVC Group Appoints New PresidentAlex Wellen, formerly CEO and president of MotorTrend Group, has taken on the role.
Events & AwardsMar 26, 2025
Jewelers of America Announces New Funding Initiative The Impact Initiative is part of the nonprofit association’s new three-year strategic plan.
AuctionsMar 25, 2025
Christie’s To Auction 35-Carat Sapphire, 13-Carat RubyThe ruby and the sapphire, which Christie’s calls a “once-in-a-generation masterpiece,” are part of the upcoming Hong Kong jewelry auction.
