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April 26, 2017
CFPB fines servicemember auto lender $1.25M for order violation
CFPB issued another fine Wednesday against Security National Automotive Acceptance Company, an auto lender that specializes in loan made to servicemembers, requiring them to pay an additional $1.25 million for violating the bureau's 2015 consent order.
In 2015, SNAAC was ordered to refund or credit about $2.28 million to servicemembers for illegal debt collection tactics, including "making threats to contact servicemembers' commanding officers about debts and exaggerating the consequences of not paying," the CFPB said. The company also had to pay a penalty of $1 million.
In Wednesday's actions, the CFPB said that "SNAAC violated the 2015 order by failing to provide more than $1 million in refunds and credits, affecting more than 1,000 consumers."
SNAAC, based in Mason, Ohio, is an auto-finance company that operates in more than 24 states. An October 2015 CFPB consent order found that SNAAC had engaged in unfair, deceptive, and abusive acts and practices while collecting on auto loans. The CFPB on Wednesday said SNAAC submitted two plans that claimed to provide the full amount of redress ordered, but later discovered that SNAAC had issued worthless "credits" to hundreds of consumers and failed to provide proper redress to many more.
Wednesday's consent order can be found here.
In 2015, SNAAC was ordered to refund or credit about $2.28 million to servicemembers for illegal debt collection tactics, including "making threats to contact servicemembers' commanding officers about debts and exaggerating the consequences of not paying," the CFPB said. The company also had to pay a penalty of $1 million.
In Wednesday's actions, the CFPB said that "SNAAC violated the 2015 order by failing to provide more than $1 million in refunds and credits, affecting more than 1,000 consumers."
SNAAC, based in Mason, Ohio, is an auto-finance company that operates in more than 24 states. An October 2015 CFPB consent order found that SNAAC had engaged in unfair, deceptive, and abusive acts and practices while collecting on auto loans. The CFPB on Wednesday said SNAAC submitted two plans that claimed to provide the full amount of redress ordered, but later discovered that SNAAC had issued worthless "credits" to hundreds of consumers and failed to provide proper redress to many more.
Wednesday's consent order can be found here.
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