Tennessee, Florida Join Texas in Suing Friedman's

The action by the attorneys generals of the two states comes just a day after a similar move by the Texas Attorney General Greg Abbott who on Monday said he was suing Friedman’s. Abbott alleges Friedman’s misled its customers about the level of required insurance coverage when applying for installment credit on purchases.

The Tennessee lawsuit claims Friedman's financed customers’ purchases and then added charges for insurance without the customers’ permission. The state's attorney general is requesting Friedman's refund the extra money it collected.

Friedman's has 21 stores in Tennessee out of 650 stores in the U.S.

Meanwhile, the state of Florida accused Friedman's of "duping" customers into paying for life, property and other insurance while they thought they were insuring their financing of jewelry purchases.

Florida Attorney General Charlie Crist said Friedman's allegedly sold $46.7 million of the insurance in 19 states, but failed to adequately disclose the costs to customers.

According to the complaint, between 1998 and 2002 Friedman's added charges to retail contracts for life, credit disability and property insurance without informing customers or seeking their consenting signatures.

In Florida, where the Savannah, Georgia-based retailer has 56 stores, the suit estimated Friedman's sold $2.265 million of the insurance. If found to have engaged in deceptive practices, the company may have to pay back customers in full, and could face a penalty of up to $1 million.

Friedman's, which has replaced most of its senior executives in recent months with some top officers lasting just a few months, said it did not condone any improper practices alleged in the complaints.

Friedman's said it believes that the transactions in question arose several years ago and it had since put in place measures to monitor and assure compliance with company policy concerning credit insurance sales practices.

Friedman's said it has held talks with attorneys general from several states about credit insurance sales practices and other matters. Friedman's stated that similar actions may be filed by attorneys general in other states.