29 April 2010

Scam Targets Service Members

NY Attorney General Andrew Cuomo brings charges against a company called SmartBuy and its affiliates which has locations nationwide near military installations, for targeting soldiers with fraudulent and deceptive business practices.

From a Consumer Affairs article:

Cuomo says an investigation by his office determined that the company and its affiliated lenders targeted soldiers with so-called "financing" offers of monthly payments that were actually open-ended loan agreements, costing the soldiers thousands of dollars extra for consumer electronics.

"The specific intent of this business was to target soldiers on the move, fleecing them for thousands of dollars and leaving them with little recourse," Cuomo said. "We have no tolerance for companies or individuals who take advantage of those serving in our military."


In 2008, SmartBuy's collective locations across the country brought in between $32 and $36 million, according to Cuomo. Until recently, SmartBuy operated a storefront and kiosk in the Salmon Run Mall [Watertown, NY, near Fort Drum]. Once the business became aware of the Attorney General's investigation and expected legal action, SmartBuy abruptly shut down the location, Cuomo said.

Cuomo said his investigation has determined that all SmartBuy locations across the country are set up in close proximity to large military establishments and communities.

Spread the word, don't do business with SmartBuy.

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