CA Attorney General Rob Bonta and San Diego County District Attorney, Summer Stephan, announced a $500,000 settlement with San Diego-based jewelry store Attractive Gems Jewelers (Attractive Gems) and its two owners, resolving allegations that the company engaged in deceptive lending practices. A joint investigation by DOJ and the San Diego County District Attorney’s Office found that Attractive Gems misled consumers by falsely promoting a store credit line as a way to build credit. The company also failed to provide required credit disclosures, and used unlawful arbitration clauses in installment contracts with military service members in violation of the federal Military Lending Act. Today’s proposed settlement, pending court approval, includes $400,000 in consumer restitution, $100,000 in civil penalties, and strong injunctive terms to deter future misconduct. “Deceiving consumers and using false advertising to sell credit products has no place in California. Attractive Gems Jewelers lured consumers in —including military servicemembers based in Southern California — with false promises of helping to build their credit. Today’s settlement provides important restitution for those harmed by Attractive Gem’s attempt to take advantage of struggling consumers, and a reminder to those offering credit products that they need to play by the rules. I thank the San Diego County District Attorney’s Office for their collaboration in this investigation and in the important effort to protect California consumers.” – AG Bonta