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Category: Press release

CFPB Report Finds Servicemembers Continue To Face Roadblocks From Student Loan Servicers

Servicers Still Failing to Provide Legal Protections to Military Borrowers WASHINGTON, D.C. – Today the Consumer Financial Protection Bureau released a report outlining the continued challenges faced by servicemembers when they contact student loan servicers to invoke the military rights and protections earned through their service. The report, “Overseas & Underserved: Student Loan Servicing and […]

Published
Category: Press release

CFPB Takes Action Against Servicemember Auto Lender for Aggressive Debt Collection Tactics

Auto Loan Company Misled Servicemembers About Consequences of Nonpayment WASHINGTON, D.C. — Today the Consumer Financial Protection Bureau (CFPB) sued an auto loan company, Security National Automotive Acceptance Company, for aggressive debt collection tactics against servicemembers. In a complaint filed in federal court, the CFPB alleges that the company used a combination of illegal threats […]

Published
Category: Press release

CFPB Launches Financial Coaching Initiative

Program Targets Transitioning Veterans and Economically Vulnerable Consumers WASHINGTON, D.C. — Today the Consumer Financial Protection Bureau (CFPB) is launching its Financial Coaching Initiative, targeting recently-transitioned veterans and economically vulnerable consumers to help them with their financial goals. The program places 60 certified financial coaches at organizations around the country to provide individualized educational services. […]

Published
Category: Press release

CFPB Takes Action Against Military Allotment Processor for Charging Servicemembers Hidden Fees

Servicemembers Unknowingly Paid Millions in Fees to Fort Knox National Company and Military Assistance Company WASHINGTON, D.C. – Today the Consumer Financial Protection Bureau (CFPB) is taking action against Fort Knox National Company and its subsidiary, Military Assistance Company, for charging servicemembers millions of dollars in hidden fees. The military allotment processor did not clearly […]

Published
Category: Press release

CFPB Report Finds Loopholes In Military Lending Act Rules Rack Up Costs For Servicemembers

CFPB Backs Department of Defense Proposal to Broaden the Rules for Greater Protections WASHINGTON, D.C. – Today the Consumer Financial Protection Bureau (CFPB) issued a report highlighting how loopholes in the current Military Lending Act rules are racking up costs for servicemembers. According to the report, these gaps have allowed companies to offer high-cost loans […]

Published
Category: Press release

CFPB and States Take Action Against Freedom Stores for Illegal Debt Collection Practices Against Servicemembers

Retailer and Debt Collectors to Provide Over $2.5 Million in Consumer Relief for Illegal Lawsuits and Unauthorized Debits WASHINGTON, D.C. – The Consumer Financial Protection Bureau (CFPB) and the Attorneys General of North Carolina and Virginia took action today to protect military servicemembers from illegal debt collection practices. The CFPB alleges that Freedom Stores, Inc., […]

Published
Category: Press release

CFPB Issues Statement on Department of Defense’s Military Allotment System Reforms to Protect Servicemembers

WASHINGTON, D.C. – Today, the U.S. Department of Defense announced critical new protections for servicemembers using the military discretionary allotment system. The changes announced today will preserve the allotment system while eliminating the aspects that are most frequently abused by businesses that target servicemembers.

Published
Category: Press release

CFPB Releases Statement on Department of Defense Proposal to Amend Military Lending Act Rule

WASHINGTON, D.C. – Today, the U.S. Department of Defense issued a proposal that would expand the types of credit products that are covered by the 36-percent rate cap and other military-specific protections under the Military Lending Act. The proposal would close loopholes that have led to lenders skirting the law with products that fall outside […]

Published
Category: Press release

CFPB Shuts Down USA Discounters’ Servicemember Fee Scam

WASHINGTON, D.C.— The Consumer Financial Protection Bureau (CFPB) today put an end to a servicemember fee scam run by USA Discounters, Ltd., a company that operates a chain of retail stores near military bases and offers financing for purchases. USA Discounters tricked thousands of servicemembers into paying fees for legal protections servicemembers already had and for certain services that the company failed to provide. The CFPB has obtained more than $350,000 in refunds for servicemembers harmed by this scam, and USA Discounters will pay an additional $50,000 civil penalty.

Published
Category: Press release

CFPB and 13 State Attorneys General Obtain About $92 Million in Debt Relief for Servicemembers Harmed by Predatory Lending Scheme

WASHINGTON, D.C. — The Consumer Financial Protection Bureau (CFPB) and 13 state attorneys general obtained approximately $92 million in debt relief from Colfax Capital Corporation and Culver Capital, LLC, also collectively known as “Rome Finance,” for about 17,000 U.S. servicemembers and other consumers harmed by the company’s predatory lending scheme. Rome Finance lured consumers with the promise of no money down and instant financing. Rome Finance then masked expensive finance charges by artificially inflating the disclosed price of the consumer goods being sold. Rome Finance also withheld information on billing statements and illegally collected on loans that were void. Rome Finance and two of its owners are permanently banned from consumer lending.