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CFPB and the attorneys general in North Carolina and Virginia on Thursday ordered Freedom Stores Inc. and others to provide more than $2.5 million in relief to servicemembers affected by their illegal debt collection practices.

CFPB alleges that Freedom Stores Inc., Freedom Acceptance Corporation and Military Credit Services LLC used illegal tactics to collect debts, including filing illegal lawsuits, contacting servicemembers' commanding officers and debiting accounts without authorization. CFPB and the states filed a consent order requiring the three companies and their owners to provide more than $2.5 million in consumer relief and to pay a $100,000 civil penalty.

CFPB's investigation found that these companies violated the Dodd-Frank Act and illegal practices included:

• illegally filing thousands of lawsuits in Virginia for out-of-state contracts;
• double-dipping into servicemembers' funds;
• contacting commanding officers to pressure servicemembers to repay debts; and
• illegally debiting bank or credit card accounts of the servicemembers' family and friends.

Blogging about the lawsuit for the bureau, Holly Petraeus, CFPB's assistant director of the Office of Servicemember Affairs, said the bureau receives more complaints about debt collection from servicemembers, veterans and their families than any other issue.