Conn's Appliances Complaint - Deceptive Trade Practices
PASADENA, TEXAS -- I purchased a Washer, Dryer and Dishwasher from Conn's in Pasadena, TX on April 16, 2010. During the transaction, the sales person told me I was required to purchase property insurance to cover the items since they were purchased with a Conn's credit account. I protested stating that I had home owners insurance through State Farm to cover the products. I was told I had to purchase the insurance from Conn's, but could bring in my declaration page within 10 days and the charge would be credited to my Conn's account.
This is clearly false and deceptive trade practices. It's my understanding from others that this is standard practice for Conn's, not an isolated incident. It would appear that the company is engaging in willful deceptive trade with the intent to defraud it's customers regarding this unnecessary insurance. Further, the charge of $126.75 is excessive. This is an exorbatant rate for 18 months coverage of only $1,539.15.
Not only is this insurance sold through fraudulent and deceptive means, it's presented in violation of the terms of the contract. The salesperson stated that I must buy this insurance until I provided the attached proof of Home Owners Insurance Coverage. However, the Retail Installment Contract clearly states otherwise… “Property insurance is required in connection with this loan. YOU MAY OBTAIN PROPERTY INSURANCE FROM ANYONE YOU WANT OR USE EXISTING POLICIES ISUED BY INSURANCE COMPANIES AUTHORIZED TO DO BUSINESS IN TEXAS.”
Further, the Retail Installment Contract give the OPTION TO ELECT “1) Purchase property insurance through the seller; or 2) SUPPLY MY OWN PROPERTY INSURANCE COVERAGE (EVIDENCE OF WHICH MUST BE PROVIDED TO THE SELLER WITHIN 10 DAYS).”
This was clearly a case of false and deceptive trade practices. Conn's must be held accountable. I would encourage anyone who has experienced this to file a complaint as soon as possible with the Texas State Attorney General and the BBB right away. Conn's was sued by the Texas AG in 2009 for deceptive trade regarding extended warranties, but it would appear they've not learned their lesson. They have simply shifted these shady business practices to another category. These trade practices must be stopped once and for all.