Arkansas takes part in settlement with jewelry company

The investigation of the nation`s third largest jewelry chain alleged that the jewelry company engaged in unfair or deceptive trade practices by failing to adequately inform consumers regarding insurance fees charged by Friedman`s. In January 2005, Friedman`s filed bankruptcy. At that time, Friedman`s had 560 jewelry stores in 21 states. Post bankruptcy, Friedman`s now has 427 jewelry stores in 20 states. During the investigation, the state attorneys general alleged that Friedman`s, when selling jewelry and financing the purchase, would charge additional amounts for credit life, credit disability and property insurance without adequately informing consumers that they were purchasing insurance. Under the terms of the settlement, Friedman`s has agreed to extensive injunctive relief requiring clear and conspicuous point of sale disclosures when offering credit insurance to consumers. Additionally, Friedman`s will be required to comply with licensing laws before offering credit insurance and Federal Truth In Lending laws. Friedman`s is paying $2,150,000.00 to the multi-state group under the agreement. The states participating in the settlement are Alabama, Arkansas, Delaware, Florida, Georgia, Illinois, Indiana, Kentucky, Louisiana, Maryland, Mississippi, Missouri, North Carolina, Ohio, Oklahoma, South Carolina, Tennessee and Texas. While entering into the settlement, Friedman`s has denied wrongdoing and all of the allegations. (Copyright 2006 Newsroom Solutions, LLC)