More than 500 current and former Maryland brides-to-be have cash coming their way as part of a settlement between the state's attorney general and David's Bridal, the national discount dress chain.
David's Bridal has agreed to pay more than $33,000 in restitution, plus $30,000 in penalties and legal costs, for allegedly charging consumers excessive layaway cancellation fees during the past four years, Attorney General Douglas F. Gansler announced yesterday.
The company, which has five shops in Maryland, routinely billed buyers a 25 percent forfeiture fee if they canceled a layaway order, according to Gansler. Maryland law says businesses can't charge more than 10 percent of the purchase price if such a contract is called off.
David's Bridal declined to comment. A statement from Gansler's office said the company "denied that it had violated the law but agreed to settle" and change its layaway fee structure.
"Businesses cannot charge consumers who cancel layaway purchases fees in excess of those permitted by law," Gansler said in a statement. "I am pleased that consumers will be receiving refunds."
The state's Consumer Protection Division will contact consumers who are due refunds, which will range from $5 to more than $200, according to Gansler's office.
tricia.bishop@baltsun.com