Watchdog questions whether QVC video rental company has a business model

Video rental company QVC has been caught violating state consumer protection laws, and regulators have asked the company to pay for the damages.

In a letter to the company sent Monday, New York Attorney General Eric Schneiderman and other state attorneys general said QVC violated the state’s Consumer Protection Act and the Fair Debt Collection Practices Act by making deceptive promotional claims to customers about how much their purchases would cost.

Schneiderman said Qvc violated consumer protection rules by misrepresenting its rental rates and other information to lure customers in with promises of discounted rentals, while simultaneously misleading consumers about its rates.QVC also violated the Fair Credit Reporting Act by failing to report to the New York Department of Financial Services its failure to disclose the use of a payment card used to purchase rental services in violation of the Consumer Protection Law.

The Attorney General’s office also said QFCS violated the federal Fair Credit Report Act by refusing to provide a copy of the credit report to law enforcement authorities, which the AG said was a violation of federal law.

Schneckman’s office said the letter was signed by Acting Attorney General Michael K. Gallagher and Consumer Affairs Commissioner David B. Gantt, who said the investigation into QVC’s rental practices has been underway for more than two years.

The AG’s office has been trying to reach out to QVC since May.

Qvc, which has a network of nearly 1,200 stores, is part of a nationwide business that has become increasingly popular with younger consumers and those in rural areas, as well as people in low-income areas, who can’t afford to pay full price.QFCS has been criticized in the past for its advertising tactics, including placing a banner above an online store and offering free TV and radio stations.

QFCSC has said that its ads are tailored to appeal to the specific needs of its customers.