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Texas AG Files Lawsuit Against Conn's

Company Lied To Customers, Didn't Fix Broken Products, Says AG Greg Abbott

POSTED: Thursday, May 28, 2009
UPDATED: 6:18 pm CDT May 28, 2009

Charging the company with failing to honor product warranties, misleading consumers and false advertising, the Texas Attorney General's Office announced it had filed a lawsuit against electronics and appliance retailer Conn's.

More than 2,000 complaints were filed with the attorney general's office against the Beaumont, Texas-based retailer, according to a news release. The state is seeking $20,000 per violation of the Texas Deceptive Trade Practices Act and $250,000 if anybody 65 years of age or older was harmed.

A local woman said she spent more than a month trying to get the company to repair or replace her fault air conditioning unit.

"I've called the salesman, the store, I went down to the store, I've gone all the way to (Interstate) 35 and Eisenhauer (Road) to their service center twice," said customer Christina Asevedo. "Every time I go, they say there's no supervisors available."

Asevedo said she was finally given credit for the faulty unit, but had to purchase a higher priced model to replace the previous model.

According to the attorney general's news release, Conn's sales staff were trained to use high-pressure techniques to sell extended warranty plans, citing a secret company document (PDF). The attorney general's office also alleges that people buying extended warranties were told they'd receive new items if their purchase broke down, but actually received refurbished or rebuilt items.
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