Military Service Members

DOJ Obtains $907,000 Settlement for Auto Lender's Repossession of Active Duty Servicemembers' Vehicles

On September 18, 2017, the Department of Justice (“DOJ”) announced that it had entered into a $907,000 settlement with an auto loan lender and servicer (“Defendant”).  In its co​mplaint,​ filed the same day in the United States District Court for the Northern District of Texas, the DOJ alleged that the Defendant had…

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New York AG Settles with Retail Financing Company that Allegedly Lured Servicemembers into Revolving Credit Contracts

On March 22, 2017, the New York Attorney General’s Office (“New York AG”) announced that it had entered into a $540,000 settlement with a Virginia retailer and financing company that allegedly used deceptive practices to lure military servicemembers into financing agreements for the purchase of consumer goods. The New York AG alleged that the companies sold servicemembers…

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Mortgage Servicer Enters in to $225 Million Consent Order with California DBO

On February 17, 2017, the California Department of Business Oversight (California DBO) announced that it had entered in to a $225 million consent order with a national mortgage servicer following an investigation by a third-party auditor into loans serviced by the company in California between January 1, 2012 and June 30, 2015.  The servicer had agreed to the audit…

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Colorado AG Settles Illegal Lending And Debt Collection Claims Against Two Lenders

Colorado

On August 1, 2016, Colorado Attorney General Cynthia H. Coffman announced a settlement of two lawsuits against lenders for targeting the military and other allegedly illegal lending practices. According to the Attorney General, the settlement comes after charges filed against the lenders in 2015, alleging that the lenders used illegal…

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Colorado AG Files Action Against Retailer Over Credit Extended to Military Servicemembers

On July 17, 2015, the Attorney General for the State of Colorado (“Colorado AG”) filed a lawsuit in Denver District Court alleging that a retailer and its related companies repeatedly violated Colorado’s consumer lending laws concerning credit extended to military servicemembers. ​ The action is the second lawsuit filed by the Colorado AG in the…

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Auto Finance Company Sued By CFPB Over Military Debt Collection Activities

On June 17, the Consumer Financial Protection Bureau (CFPB) announced that it had filed a ​complaint against a national automobile finance company over allegations that the finance company used illegal threats and deceptive tactics to collect debts from military servicemembers.  The complaint alleges that the finance company violated the Consumer Financial Protection Act…

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OCC Enters Consent Orders with National Bank Regarding Compliance with SCRA

On May 29, 2015, the Office of the Comptroller of the Currency (“OCC”) entered into two consent orders with a National Bank regarding the bank’s non-home loan compliance with the Servicemembers Civil Relief Act (“SCRA”) and the bank’s practices in connection with non-home debt collection litigation practices. The OCC estimates…

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