California Court Rules LA Retailer Illegally Sold Credit Insurance

The California Second District Court of Appeals found that a retail store chain illegally sold credit insurance to its customers.

The California Department of Justice charged Adir International LLC (dba Curacao), and its owner Ron Azarkman of unlawfully profiting from the chain’s customers, alleging the retail store chain with 10 locations in Southern California illegally sold credit insurance to its customers.

In 2017, the Attorney General’s Office filed a lawsuit against Curacao alleging that the company was engaging in numerous and pervasive unlawful, unfair and fraudulent business practices. The lawsuit alleged that Curacao lured in customers by advertising low prices and easy credit, then informed customers they could only buy at the advertised price after purchasing ancillary accessories, warranties, or installation services.

Curacao and Azarkman previously agreed to provide more than $10 million in relief, and to be subject to a permanent injunction, in a partial settlement of the Attorney General’s claims.

The ruling affirms allegations brought by the DOJ, concluding the company violated the California Insurance Code. The ruling also reverses a trial court’s findings, holding that account/credit protection fees are prohibited under state law.

The DOJ was assisted in the case by the Los Angeles County Department of Consumer and Business Affairs.

Topics California Legislation Louisiana