• Report: #1112150
Complaint Review:

USA Discounters

  • Submitted: Wed, January 01, 2014
  • Updated: Wed, January 01, 2014

  • Reported By: Terry — Vista California
USA Discounters
1767 Oceanside Blvd. Oceanside, California USA

USA Discounters Poor Customer Service, Inconsistent Stories, Insane Prices Oceanside California

*Author of original report: It is NOT business 101 to take advantage of people...

*General Comment: really...

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I am in the process of attempting to improve my credit after a divorce left me with rather poor credit. I have been able to purchase a new car at a higher interest rate, and all payments have been on time for that. I also have a very solid work history with over 5 years at the same job. I earn a reasonable amount of money (app. $40k per year) and I DO have money in savings...

I contacted USA Discounters because I want to open some small accounts in order to have current credit. I was interested in an alarm system they had (Viper Responder LC3) two way paging alarm with remote start. I applied via the website and was contacted two days later by the manager of the Oceanside store and was informed that I had been approved for $250 with 90 days to pay it off. I asked what the cost of the alarm was and was told $500.

I explained that unless I was able to finance the entire thing, it wasnt worth the effort or increased price to do this so he said that he would work to get my credit limit increased. I had to send him scans of my pay check and drivers licence which I immediately did. The following day I get a call from another person stating that they had not received the documents but that I could pay cash for the balance and just finance the $250. Again, I explained this was not worth the effort.

He stated that he would contact the approvals department and see what could be done. About 30 minutes later he calls me to say that approvals had ONLY approved me for $150 ($100 less than the day before) and that was the best they could do. He explained that it was based on my income...

I asked him how he felt it was in my best interest to pay almost $600 after financing charges for an alarm that I could buy at a car audio shop in the same zipcode for $250 installed and he said that "obviously our services are not for you!" and he began explaining that MOST of their customers do not have the ability to pay cash for anything and that USA Discounters is the last resort for them.

I again explained that I was probably NOT their typical customer, and that I appreciated their effort but I was smart enough to not pay $600 for something that I could get for $250. ESPECIALLY when they were only willing to finance it for 90 days (what good would this really do for a credit rating?)

It seems to me as an educated person, that they are simply over charging for things and then adding additional fees for financing with no regard for how it actually helps a customer or what benefit it has to their credit rating. They are in fact just a store selling products for more than double their value with no intent to help anyone with anything.



This report was posted on Ripoff Report on 01/01/2014 05:31 PM and is a permanent record located here: http://www.ripoffreport.com/reports/usa-discounters/oceanside-california-92054/usa-discounters-poor-customer-service-inconsistent-stories-insane-prices-oceanside-cali-1112150. The posting time indicated is Arizona local time. Arizona does not observe daylight savings so the post time may be Mountain or Pacific depending on the time of year.

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Updates & Rebuttals

#1 Author of original report

It is NOT business 101 to take advantage of people...

AUTHOR: Terry - ()

I happen to have a degree in business administration from a very respected East Coast university... And I can tell you in no uncertain terms that these practices are NOT taught in any acredited university.

Second, you state that they are NOT claiming to assist in credit rebuilding, yet their mission statement clearly states that they are. Here you go, I have copied/pasted it so that you dont need to put any actual effort in to seeking it yourself.

The USA Discounters mission is to help customers finance merchandise in order to establish or re-establish their good credit standing and is accomplished by the following:

  • Instant approvals with USA Discounters in-house financing
  • Affordable monthly payments
  • Immediate merchandise delivery
  • Monthly reporting to credit bureaus
  • No prepayment penalties

You are correct, I HAVE NOT been ripped off... But after going through the pages or reports that others had filed, I felt compelled to post my story. I would be interested in knowing your definition of slander, as you have claimed that I have slandered USA DIscounters. When in fact all I have done is clearly and concisely documented facts based on my experience over the past few days. Sure, I have also given my opinion... But I would think that given the facts, the opinion is justified.

I can completely understand if a company wishes to charge high interest rates to customers who have less than acceptable credit. But I do not understand the concept of charging double the price AND charging a high interest rate. As I said, I recently bought a new car and was charged a higher than normal interest rate. But I was NOT charged more for the vehicle also. In fact, the dealership reduced the price of the vehicle in order to assist in financing the vehicle.

Further, the US Attorney Generals office has forced USA Discounters to lower their prices in certain regions because of this practice... The US Attorneys office determined that artificially inflating the price of merchandise was akin to charging unacceptable interest rates. Basically HIGH PRICE + HIGH INTEREST = ILLEGAL. Again, I have copied/pasted this for you to make it easy...

Washington, DC - Interim Attorney General Eugene A. Adams announced today that retailer USA Discounters, Ltd., has agreed to reduce the maximum prices charged to customers in the District of Columbia, resolving allegations that the company's high markups on many credit sales had the effect of masking high interest rates.

USA Discounters sells home furnishings and auto accessories, often to consumers with impaired credit. The company is headquartered in Virginia Beach and has stores in the District of Columbia, Virginia, Maryland, Georgia, North Carolina, and Texas.

Under the agreement, USA Discounters has agreed to reduce the highest retail prices offered to credit customers by 21%. Under the federal Truth in Lending Act, charges imposed on credit customers, but not on cash customers, constitute "finance charges" that must be disclosed. These finance charges must also be included in the calculation of the disclosed Annual Percentage Rate (APR). Under District law, annual interest rates cannot exceed 24%.

"Prices for customers who buy on credit cannot be artificially inflated to hide the true cost of credit," said General Adams. "The prices that retailers use to comply with interest rate disclosures under federal law and with interest rate ceilings under District law must be bona fide retail prices."

As part of the settlement agreement, USA Discounters will pay $50,000 into the District Government's Consumer Protection Fund.

Consumers with questions about this action can call the Office of the Attorney General's consumer complaint hotline at (202) 442-9828. For consumer education tips and information on how to make an effective consumer complaint, go to the Office of the Attorney General website at http://www.oag.dc.gov/.


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#2 General Comment


AUTHOR: Tyg - ()

 And you call yourself EDUCATED!!! This one is business 101. You have HIGH RISK clients, with either a poor credit history OR the inability to pay cash and you THINK they are JUST selling it at double for no reason. Its called covering your a$$!! Sure YOU can go get the same alarm system cheaper elsewhere. But if YOU HAVE NO MONEY to do so, then you have to finance it through them. WHICH MAKES THEM A SUB PRIME LENDER!! Which means higher then normal pricing and interest. This way if the client chooses to bail on their obligations, then they SHOULD have made back the original costs of the product. Everything else beyond that is PROFIT!! You know, that elusive idea that being in business MAKES money. No business would be able to stay afloat if they ONLY strove for breaking EVEN. To bash them for attempting to live the American Dream sounds like sour grapes on YOUR part.

You have not been scammed and you have not been ripped off. You went to a sub prime lending store and it wasnt for you. They provide a VALUABLE service for those people who do NOT make 40k a year. They help the POOR PEOPLE to be able to afford NICE THINGS. Thats not a ripoff. Thats just YOU being YOU. Ok their service did not meet your needs, but somehow you feel its perfectly justified to slander them by posting a negative review because YOU dont agree with their pricing.

Like I said. Yeah youre really educated. I guess even college grads can FAIL in the super power of COMMON SENSE!! Their job is NOT to help a customer build their credit. Their job is to help secure financing. It is NOT part of their job description to help you build or rebuild credit. To think that it is truly shows that YOU have unrealistic expectations that NO ONE can meet.

Perhaps you need to see what is like to be REALLY POOR!! I mean so poor dirt is richer then you when you find a penny on the ground. Then maybe you would see the service that they provide. I feel you are blinded by your own goals and success. If you WERE that poor you would be able to appreciate how this business puts itself at risk everytime they deal with a new customer.

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