Sunday, April 30

Hall of Shame: CFPB Orders Servicemember Auto Loan Company to Pay $3.28 Million for Illegal Debt Collection Tactics

The job of the most honest seller is to sell you, not to give you reasons to buy from a competitor. That over-riding reality drives the free-enterprise system, and places a responsibility on you.

FoolProof's Hall of Shame is here to remind you why a healthy dose of skepticism should rule your decisions before dealing with anyone who wants to touch your money or your general welfare.

October 28, 2015

Auto Loans

"Security National Automotive Acceptance Company must refund or credit its customers $2.28 million for coercing money out of them using illegal debt collection practices," said CFPB Director Richard Cordray. "Servicemembers should not be forced to pay because a debt collector used deceptive pressure tactics."

Source: www.consumerfinance.gov

Security National Automotive Acceptance Company (SNAAC) was found guilty of:

  • Exaggerated potential disciplinary action that servicemembers would face
  • Contacted and threatened to contact commanding officers to pressure servicemembers into repayment
  • Falsely threatened to garnish servicemembers' wages
  • Misled servicemembers about imminent legal action

The Consumer Financial Protection Bureau's (CFPB) order requires that SNAAC:

  • Provide about $2.28 million to thousands of harmed servicemembers and other consumers
  • End threats to contact commanding officers
  • End misstatements about potential disciplinary action
  • End false threats of legal action against a consumer
  • End false threats of garnishing wages
  • Pay a civil monetary penalty of $1 million