May 19, 2009
Attorney General Corbett announces distribution of $500,000 to former Pure Weight Loss customers
HARRISBURG - Attorney General Tom Corbett today announced that checks totaling $500,000 have been sent to more than 2,300 consumers across the country as part of an agreement with Pennsylvania-based Pure Weight Loss, Inc.
Corbett said that under the terms of a consent decree, Pure Weight Loss was required to pay $500,000 to the Pennsylvania Office of Attorney General, for distribution to consumers who pre-paid for products and services that were not delivered and who filed valid complaints with the Attorney General's Health Care Section.
Corbett noted that the agreement also set aside another $200,000, which will be used to provide restitution to consumers who filed claims in the U.S. Bankruptcy Court case involving Pure Weight Loss. The Attorney General's office has submitted a proposal to the federal Bankruptcy Trustee for Pure Weight Loss to certify that those funds will be used exclusively to pay consumer claims.
Corbett said that partial refund payments have been sent to a total of 2,359 consumers from 32 states who filed eligible complaints with the Attorney General's Office about Pure Weight Loss contracts. The average payment is $212 and consumers should receive their checks within the next week.
Corbett said another 368 Pure Weight Loss claims involving residents from New York and Maryland have been turned over to the Attorney General's Offices in those states. Valid consumer claims from those states may be paid using security bonds that weight loss businesses are required to post in New York and Maryland.
Additionally, another 273 consumers who had purchased Pure Weight Loss products using credit cards were able to receive reimbursement through their credit card companies.
Corbett explained that the Attorney General's Health Care Section began receiving complaints about Pure Weight Loss in December 2007, shortly after the company announced plans to close more than 400 weight loss centers across the country. The company halted operations in January 2008 and filed for bankruptcy shortly after that, leaving thousands of consumers without access to weight loss products and services that they had pre-purchased.
The federal bankruptcy case involving Pure Weight Loss is ongoing. Partial refund distribution for consumers who filed valid, approved proofs of claim with the U.S. Bankruptcy Court may take place at the conclusion of that bankruptcy case.