Crime

Harris Jewelry to Pay Millions in Predatory Lending Settlement

CrimeJul 26, 2022

Harris Jewelry to Pay Millions in Predatory Lending Settlement

The jeweler is accused of defrauding thousands of U.S. military members.

20220726_Harris Jewelry.jpg
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.
 
 Related stories will be right here … 
 
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.
 

The Latest

Jemma Wynne Forme Toggle Necklace
CollectionsJul 25, 2025
Piece of the Week: Jemma Wynne’s ‘Forme’ Necklace

Anne Hathaway was seen wearing the toggle necklace three times while filming scenes for “The Devil Wears Prada 2.”

September Hong Kong jewelry show
Events & AwardsJul 25, 2025
Pre-Registration Open for September Hong Kong Show

Jewellery & Gem World Hong Kong is scheduled for Sept. 15 to 21, and buyer pre-registration will be available until Sept. 7.

Bulgari Celestial Mosaic spinel necklace
FinancialsJul 25, 2025
LVMH Sales Slip in H1 Amid ‘Prevailing Uncertainties’

Renovations at Tiffany & Co. stores ate into profits in the company’s watch and jewelry division.

rio-article photo-diamond.jpg
Brought to you by
Taking the Moment Head On: How Rio Grande Champions the Present & Future of Fine Jewelry

As a leading global jewelry supplier, Rio Grande is rapidly expanding and developing new solutions to meet the needs of jewelers worldwide.

Mark and Candy Udell
Events & AwardsJul 24, 2025
2 Retailers to Receive 2026 Gem Award for Lifetime Achievement

Mark and Candy Udell of London Jewelers will receive the honor at the 24th annual Gem Awards next March.

Weekly QuizJul 25, 2025
This Week’s Quiz
Test your jewelry news knowledge by answering these questions.
Take the Quiz
De Beers marine mining vessel the SS Nujoma
SourcingJul 24, 2025
De Beers Sees Diamond Production Sink 36% in Q2

While struggles continue at the mining and trading end of the pipeline, consumer demand for diamond jewelry is holding steady.

Francesca Villa Fantasia Collection The Crab Pendant, The Mermaid Pendant, Keep Dancing Seahorse Pendant, Keep Dancing Ladybug Pendant, Secret Dreams Pendant, The Puffer Fish Takes Flight Pendant
CollectionsJul 24, 2025
Francesca Villa Adds Dimension to Her Intaglio Characters

The “Fantasia” jewelry collection turns the intaglio animals from her “Close Encounters” collection into 3D characters.

an instructor and a student in a bench jewelry classroom
Brought to you by
Investing in the Next Generation of Bench Jewelers

The Seymour & Evelyn Holtzman Bench Scholarship from Jewelers of America returns for a second year.

Breitling’s special Eagles Super Bowl watch on gold bracelet
WatchesJul 24, 2025
Breitling Drops Super Bowl Watch Honoring the Philadelphia Eagles

The special Classic Avi Chronograph 42 with an Eagles-green dial is limited to 59 pieces, a nod to the Super Bowl Philadelphia just won.

Silvia Furmanovich Kasmir Collection Carnelian Bracelet and Sketch
CollectionsJul 23, 2025
Silvia Furmanovich’s ‘Kashmir’ Collection Is a Tribute to Northern India

The “Kashmir” collection features centuries-old craft techniques made in collaboration with the region’s master papier-mâché artisans.

Bench jeweler holding a bracelet and a tool
IndependentsJul 23, 2025
Montreal’s Ecksand Eyes Move to SoHo

Creative Director Erica Bianchini shared why the jeweler is looking to expand into the U.S. and how it’s putting Canadian craftsmanship on the map.

LAFD Fire Station 44 and Fire Station 16
IndependentsJul 23, 2025
IJO Raises Nearly $37K for LA Fire Relief

Two Los Angeles Fire Department stations plan to use the donations to upgrade their equipment and tools.

A Vanitas by Hannah Martin and Guy Berryman Sothebys
CollectionsJul 22, 2025
Jewelry With a Rock ‘n’ Roll Aesthetic Heads to Sotheby’s London

Next week, the auction house will kick off a selling exhibition of jewelry by British artist Hannah Martin and Coldplay’s Guy Berryman.

Cover of the book “Flawless: Inside the Largest Diamond Heist in History”
SourcingJul 22, 2025
Antwerp Diamond Heist Documentary Coming to Netflix

“Stolen: Heist of the Century” is based on “Flawless,” the book about the middle-of-the-night theft, and will debut on Netflix in August.

Emmanuel Raheb
ColumnistsJul 22, 2025
The Gifting Gap: How to Market Jewelry Beyond the Holidays

Emmanuel Raheb shares the top five gifting moments outside of major holidays that jewelers should build marketing campaigns around.

NY Now
Events & AwardsJul 22, 2025
NY Now’s Summer Market Returns in August

The wholesale trade show’s Luxury Lifestyle section will showcase established and emerging jewelry designers.

Jeweler setting a diamond into a ring
MajorsJul 21, 2025
Rio Grande Expands Personalization Offerings

As demand for custom jewelry grows, the company is expanding its services to support retailers.

National Associate of Jewelry Appraisers Logo
Events & AwardsJul 21, 2025
NAJA’s 2025 ‘Ace It’ Conference To Go Virtual

The mid-year conference for jewelry and watch appraisers is slated for Aug. 9 to 10 on Zoom.

Jacquie Aiche graduated turquoise beaded necklace
TrendsJul 21, 2025
Amanda’s Style File: Graduated With Honors

Graduated stones make for elevated tennis-style pieces and dramatic statement necklaces.

24th Gem Awards Show Logo
Events & AwardsJul 21, 2025
Gem Awards Now Accepting Nominations for 2026

Nominations in the categories of Jewelry Design, Media Excellence, and Retail Innovation will be accepted through July 30.

Lewis Heyman
MajorsJul 18, 2025
Lewis Heyman on Sourcing Gemstones, Post-Retirement Plans

He retired last month after 28 years traveling the world to source the very best gemstones for his family’s jewelry business, Oscar Heyman.

CCWW Designs Multiple Shell Charm Necklace
TrendsJul 18, 2025
Piece of the Week: CCWW Designs’ Shell Charm Necklace

The charm necklace features six nautical charms of shells and coral that founder Christina Puchi collected on Florida’s beaches.

The Plumb Club board members
MajorsJul 18, 2025
Plumb Club Elects New Board Members

The organization elected its youngest vice president as it looks to draw in fresh talent.

Jewelry industry veterans Brad Campbell and John Liebler
TechnologyJul 18, 2025
Brad Campbell, John Liebler Join Clientbook’s Executive Team

Campbell joins the company as vice president of business development while Liebler is the new vice president of operations.

Silver, Gold, and Bronze Medals for Italy Olympic Winter Games
CollectionsJul 17, 2025
2026 Winter Olympic Medal Design Symbolizes Unity

The medals feature a split-texture design highlighting the Games’ first time being hosted by two cities and the athletes’ journeys.

vimeo screenshot.png
Supplier BulletinJul 17, 2025
The INSTORE Jewelry Show 2025: Your Holiday Preparations, All Wrapped Up!

Sponsored by The INSTORE Jewelry Show 2025

Guinness
SurveysJul 17, 2025
The Most Recommended Brands in the World, According to YouGov

Globally, travel and transportation brands reigned, while in the U.S., alcoholic beverage companies and a lingerie brand took the top spots.

×

This site uses cookies to give you the best online experience. By continuing to use & browse this site, we assume you agree to our Privacy Policy