Liquidating retailer USA Discounters will offer debt relief to settle litigation accusing it of scamming its Colorado customers, including military service members, Dow Jones Newswires reported on Friday. The defunct retailer, accused in multiple states of unfair financing terms and improper debt-collection efforts, particularly against military members, is asking the U.S. Bankruptcy Court in Wilmington, Del., to authorize a settlement agreement with the state of Colorado. USA Discounters said that the settlement, negotiated "on the eve of trial," marks a significant step forward in its bid to wrap up its bankruptcy liquidation. Through its USA Living and Fletcher's Jewelers stores, USA Discounters sold furniture, appliances, electronics, jewelry and other products from stores located near military bases, often financing such purchases with its own credit program. The company's business practices with regard to its military customers have come under fire in the past few years, thanks to government actions — including a $50,000 fine and an order to pay $350,000 in restitution.
