United Group Insurance

Iowa to mail 374,000 checks to buying club victims

News

September 20th, 2014 by Ric Hanson

IOWA CITY, Iowa (AP) — The state of Iowa has started mailing out 374,000 refund checks to residents who were tricked into signing up for buying club memberships, Attorney General Tom Miller said Friday. Miller said he wants people to know the refund checks are legitimate, and not a scam. He said the green checks are labeled a “State of Iowa Warrant” and signed by the director of the Iowa Department of Administrative Services.

Miller released the statement Friday after some recipients contacted state agencies seeking to verify that the payments were legitimate. He said he applauds their skepticism, adding that the state is not collecting personal information or sending emails or making calls related to the refunds. It’s expected to take the state’s settlement administrator two months to mail out all the checks. Consumers were notified by a mailing in July that the refunds would be coming.

The refunds are going to residents who paid for memberships with Vertrue Incorporated and two other buying clubs over the last 25 years, as part of a $40 million legal settlement. Most of the refunds will range from $6 to $40, but some will be $1,000 or more.