Minnesotans to get refunds, debt relief, and credit repair from Preferred Credit, Inc.
Attorney General Ellison’s office announces settlement that affects more than 400 Minnesotans
August 21, 2019 (SAINT PAUL) – Minnesota Attorney General Keith Ellison announced today that his office has reached a settlement with Preferred Credit, Inc., (PCI) a Minnesota-based financer of door-to-door sales. The settlement, which affects more than 400 Minnesotans, resolves the Attorney General’s lawsuit against PCI alleging PCI hid its high interest rate from consumers who purchased HMI’s FilterQueen Majestic vacuum cleaner and Defender room air purifier, sold by Environmental Systems, Inc. (ESI).
Under the settlement, PCI will refund consumers who purchased a FilterQueen product from ESI all interest they paid PCI as well as have their balance recalculated to reflect that they will not be charged any interest on their purchase. PCI will also delete negative reporting to consumers’ credit reports for those with written-off or active accounts. PCI will also change its business practices to fully disclose to consumers the terms of its financing plans. PCI will contact all consumers who are eligible for the refunds, debt relief, and credit repair.
“My office helps people afford their lives, but it’s hard to afford your life when financing companies hide high interest rates from you and aren’t honest with you about the terms of a loan,” Attorney General Ellison said. “We sued to help consumers that were harmed by this practice. I’m glad we won some fairness and justice for them.”
The Attorney General’s lawsuit alleged that in selling its financing for the FilterQueen products, PCI failed to disclose to some consumers that its financing plans carry 18% interest, failed to provide some consumers complete copies of their financing agreements at the time of sale, and failed to include in its financing agreements that consumers have the right to cancel their financing agreement within three days pursuant to Minnesota law.
The lawsuit was handled by Division Manager Jason Pleggenkuhle and Assistant Attorneys General Katherine Kelly and Adam Welle.