HOUSTON -- Local 2 Investigates high-pressure sales tactics at one of Texas' largest retailers.
The Texas Attorney General filed a lawsuit against Conn's appliances today, accusing the company of deceptive trade practices -- some of the same consumer complaints we told you about earlier this month.
KPRC Local 2 investigative reporter Amy Davis is showing you how the AG says Conn's encouraged so many customers to sign up for warranties the retailer refused to honor.
"Honor the contract which we put money out for," said Doug Laroche, when Davis asked him what he would like to tell Conn's if employees at the retailer would talk with him. "Do the right thing."
"If they're not going to honor it, then they shouldn't sell it," said Matthew Blanton, referring to the extended service agreements Conn's sells its customers.
We spoke with six Conn's customers on camera and dozens more by phone and e-mail who purchased extended warranties. Each one says they couldn't get the service they paid for when their appliances broke.
"I've been waiting almost nine weeks," customer Vanessa Murphy told Davis.
Complaints against Conn's to the Houston Better Business Bureau and the Texas Consumer Complaint Center shot up recent months.
"Conn's is really doing some questionable things," said Robert Johnson of the Texas CCC. "You've got to wonder why is Conn's selling warranties if they don't plan on honoring them."
Now the Texas Attorney General says he knows why.
"They have a financial incentive to drag out this process and in the meantime getting paid," AG Greg Abbott said at a news conference Thursday morning.
In the lawsuit filed in Harris County, the AG includes
Conn's training materials that he says show how the retailer taught its employees to pressure almost half of all its customers in 2008 into buying warranties.
One reads, "If the customers doesn't want the protection"... call "up that sickly feeling we all get in the pit of our stomachs when something goes wrong."
The document even gives a script for employees that says "Mrs Jones, imagine how you'll feel when you come down one morning and you open the refrigerator and everything is defrosted."
"You feel like they weren't honest with you?" Davis asked customer Keri Jordan.
"No, not at all," Jordan said. "I think they just use their sales guys to catch you and draw you in and you're out with the rest of them."
"We're here today to hold Conn's legally accountable for the misrepresentations that they made to these customers," said Abbott at the news conference.
Conn's is facing fines up to $250,000 for every violation of the Texas Deceptive Trade Practices Act.
In a statement, the retailer told us it is working with the AG's office and Conn's will continue its commitment to great customer service and improvement.
The AG is also seeking restitution for customers who may have purchased defective products or warranties from Conn's that the retailer wouldn't honor. You can a file a complaint with the AG
online or call 800-252-8011.
If you have a news tip or question for KPRC Local 2 Investigates, drop them an e-mail or call their tipline at (713) 223-TIPS (8477).
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