Defunct Hearing Aid Firm Pays Refunds

Attorney General Spitzer today announced that his office has obtained refunds for customers of a defunct Western New York hearing aid dispenser.

Allstate Hearing Systems, Inc. and its two corporate officers, David B. Bruni and Joseph Guadagnino, Jr., resolved allegations of deceptive business practices.

"My office will aggressively pursue the interests of consumers even in those situations where companies have gone out of business and left their customers empty-handed," Spitzer said.

In December 2002, Allstate Hearing Systems abruptly closed all five of its offices in the Rochester and Buffalo areas, leaving numerous consumers without hearing aids or refunds.

In total, Spitzer's office received 30 complaints from customers of Allstate Hearing Systems. Some had paid for hearing aids that had not been delivered, others were awaiting the return of hearing aids under repair. Some consumers complained that they had returned hearing aids to Allstate Hearing Services but never received promised refunds.

In settling the case, Allstate Hearing Systems agreed to pay $28,000 in refunds to consumers and to return all repaired hearing aids to the proper owners.

In addition, the manufacturer of Allstate's hearing aids - Nu-Ear of San Diego, California - has told Spitzer's office that it will honor warranties at other authorized agents. It directed consumers with repair inquiries to Park Ridge Hearing Center in Rochester and Accura Hearing Consultants of Williamsville.

Consumers who believe they are owed a refund or the return of a hearing aid have until July 29th to file a complaint with the Attorney General's office to be eligible for restitution. Individuals should call the Attorney General's consumer help line at (800) 771-7755 to file a complaint.

Allstate Hearing Systems also agreed to pay $2,000 to the state to cover the costs of the investigation.

This case was handled by Assistant Attorney General Carlos Rodriguez of the Rochester Regional Office.