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The state leads a national settlement against buying clubs

October 24, 2001
By: Richard Jordan
State Capital Bureau

For Missouri Capital Caucus, I'm Richard Jordan.

The state is leading a national investigation into buying clubs across the counrty for a nine million dollar settlement.

The office of Attorney General Jay Nixon says more than five thousand customers in Missouri signed up for free trial memberships with the buying clubs who then placed unauthorized charges on their credit cards.

When the customers called to cancel their memberships, they often recieved a busy signal.

An investigation has shown that more than 40 states were targeted, each consumer charged 96 dollars a year.

More than eight million dollars of the settlement will go to reimburse the unsuspecting customers, and remaining amount will cover investigative costs.

According to Jay Nixon, this form of consumer fraud will be handled aggresively by his office.

Reporting from Jefferson City, I'm Richard Jordan for Missouri Capital Caucus.

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