Monday, October 23

Security National Automotive Acceptance Company (SNAAC) Fined $1.25 Million for Violating Consent Order

Auto Loan Company Failed to Provide Redress for Illegal 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.

April 26, 2017

Debt Collection

Source: www.consumerfinance.gov

The Consumer Financial Protection Bureau (CFPB) today took action against Security National Automotive Acceptance Company (SNAAC), an auto lender specializing in loans to servicemembers, for violating a Bureau consent order. In 2015, the CFPB ordered SNAAC to pay both redress and a civil penalty for illegal debt collection tactics, including making threats to contact servicemembers' commanding officers about debts and exaggerating the consequences of not paying. SNAAC violated the 2015 order by failing to provide more than $1 million in refunds and credits, affecting more than 1,000 consumers. Today's consent order requires SNAAC to make good on the redress it owes to those consumers and pay an additional $1.25 million penalty.

"This company violated a Bureau order when it failed to get money back to servicemembers it had hounded with illegal debt collection tactics," said CFPB Director Richard Cordray. "We are making sure this company finally rights its wrongs."

CFPB found that the company had failed to meet its obligation to pay redress to consumers by:

  • Issuing worthless "credits" to settled-in-full accounts
  • Issuing worthless "credits" to discharged accounts
  • Failing to properly give redress to consumers making payments under settlement agreements

Under the Dodd-Frank Act, the CFPB is authorized to take action against institutions engaged in unfair, deceptive, or abusive acts or practices, or that otherwise violate federal consumer financial laws. Under today's consent order:

  • SNAAC must pay redress as promised to affected consumers
  • SNAAC must pay a $1.25 million penalty