An Ohio-based auto lender that has already been penalized for $3.28 million for using aggressive debt collection tactics against members of the armed forces is once again in hot water with the Consumer Financial Protection Bureau for failing to issue refunds to the servicemembers that were harassed. [More]
servicemembers
Auto Lender Fined Another $1.25M For Failing To Issue Refunds To Servicemembers Threatened By Debt Collectors
By 4.26.17 — Updated: 5.9.17
Many For-Profit Colleges Get More Than 90% Of Funding From Federal Government
By 12.21.16
For-profit colleges operate under the so-called “90/10 Rule,” which states that a school can’t receive more than 90% of its revenue from the federal government. However, there’s a loophole that does not count certain military-related education funds — like the GI Bill — against that 90%, meaning these schools can go over that 90% threshold without violating the 90/10 Rule. And according to a new report, hundreds of for-profit schools are indeed getting nearly every dollar of their funding from taxpayers. [More]
Navy Federal Credit Union Ordered To Pay $28.5M Over Bad Debt Collection Practices
By 10.11.16
Navy Federal Credit Union offers customers — current and former military servicemembers and their families — a wide range of financial products and services, including loans that must be repaid. But when those customers fell behind on those payments, federal regulators allege that NFCU illegally threatened borrowers and restricted access to their accounts. To resolve these allegations, the company must now pay $28.5 million in refunds and penalties. [More]
Servicemembers Twice As Likely To Submit Complaints About Unsavory Debt Collection Practices
By 3.22.16
While millions of Americans are no strangers to questionable debt-collection practices, a new report from the Consumer Financial Protection Bureau shows that the men and women in the armed forces are twice as likely than their civilian counterparts to file a complaint when a collector crosses the line.
[More]
Spirit Airlines Drops Some Baggage Fees For Active Duty Military Personnel
By 3.14.16
Spirit Airlines has long been known as the airline that charges a fee for nearly everything: checked bags, carry-on bags, seat selection, and water, just to name a few. In a change of pace, the budget carrier recently announced it would no longer charge active duty military members fees on some of their bags. [More]
AGs Seek Better Protections For Servicemembers Deceived By For-Profit Colleges
By 2.29.16
Federal regulators must do more to protect servicemembers from unscrupulous colleges seeking to get their hands on their education benefits. That’s the message eight states want to get across to the secretary of Veteran Affairs following reports that some for-profit colleges target military personnel using predatory practices. [More]
Lawmakers Continue Crusade To Rein In For-Profit Colleges Targeting Servicemembers
By 11.10.15
In recent months federal regulators and government agencies have increased scrutiny of for-profit colleges and their interactions with servicemembers, veterans and their families. Today, lawmakers furthered that mission by introducing legislation that would restore previous limits on how much money these educational institutions can receive from the federal government via military benefits and other programs. [More]
Auto Lender Must Pay $3.28M In Refunds, Penalties For Illegal Debt Collection Tactics Against Servicemembers
By 10.28.15
Four months after federal regulators filed a lawsuit against an Ohio-based auto loan company over allegations it violated consumer protection laws – including those protecting servicemembers – in order to collect debts, Security National Automotive Acceptance Company (SNAAC) will pay $3.28 million in refunds and fines to resolve the case. [More]
Servicemembers At Failing For-Profit Schools Not Protected By Veterans Affairs
By 8.18.15
When a for-profit college closes its doors, students are often left with hefty student loan tabs and little recourse. Some of those borrowers may be eligible for a discharge of their debts through the Dept. of Education, but others – like the thousands of veterans who used their GI Bill benefits to finance their education – are simply out of luck, often losing their chance to obtain a degree, thanks in part to failures within the Department of Veterans Affairs. [More]
Expansion Of Military Lending Act Closes Loopholes Exploited By Predatory Lenders
By 7.21.15
Nearly a decade after legislation was put in place to protect U.S. military personnel and their families from predatory financial products, the Military Lending Act received a much-needed update to close loopholes often exploited by shady lenders to skirt the rules and put the financial lives of servicemembers at risk. [More]
CFPB Reminds Retailers They Can’t Accept Military Allotments For Certain Purchases
By 7.20.15
Allotments allow military servicemembers to automatically direct some of their paycheck to parties of their choosing, ideally for savings, insurance premiums, housing payments, and support of dependents. Until recently, allotments could also be used to make retail purchases, but such transactions weren’t covered by many of the legal protections that come with traditional payment methods like electronic checks and debit cards. Recently enacted rules now prohibit the use of allotments for buying personal property, and federal regulators are reminding retailers they have to follow the law. [More]
Military Personnel Face Student Loan Issues Despite Required Protections
By 7.7.15
The Servicemembers Civil Relief Act (SCRA) provides a number of protections for military personnel and their families when it comes to private and federal student loans. While these benefits aim to alleviate the burden servicemembers face when paying back their educational debts, a new report from the Consumer Financial Protection Bureau shows that many student loan servicers continuously fail to uphold their end of the SCRA requirements. [More]
10 Things We Learned About The University Of Phoenix’s Alleged Military Marketing Strategy
By 7.1.15
It’s no secret that for-profit colleges receive a large chunk of their revenue from military education benefits. To deter unscrupulous for-profit colleges from unfairly targeting these prospective students, the government has imposed several limitations on just how these companies can recruit servicemembers. But a new report shows that one of the nation’s largest proprietary education institutions – The University of Phoenix – spends millions of dollars to allegedly skirt those rules. [More]
Senators Introduce Legislation To Close Federal Funding Loophole Exploited By For-Profit Colleges… Again
By 6.24.15
Legislators continued their crusade to rein in the abuses of predatory for-profit college institutions by introducing a measure today that would close a funding loophole that often led the schools to target certain consumers in order to pad their bottom line. [More]
CFPB Sues Auto Lender For Aggressive Debt Collection Tactics Against Servicemembers
By 6.17.15
By now it should come as no surprise that lenders shelling out thousands of dollars to help consumers make purchases for things like houses and cars often use lies and threats in attempts to recoup those funds. And while those tactics might result in some payments, they will also likely draw the ire of federal regulators. [More]
Legislators Once Again Trying To Delay New Lending Protections For Military Personnel
By 5.13.15
The Department of Defense is trying to do something good for servicemembers by closing loopholes in the Military Lending Act that can leave military personnel vulnerable to predatory lenders. But these safeguards are now the target of a Congressman who has received substantial campaign contributions from payday lenders. [More]
House Panel Strikes Provision That Would Delay Added Military Lending Act Protections
By 4.30.15
Yesterday we reported that Congress would make a decision whether or not it would intervene to slow the Department of Defense’s work to create new rules aimed at closing loopholes in the Military Lending Act that often leave military personnel vulnerable to predatory financial operations. Thankfully, legislators saw the need for more protections regarding military lending and determined the rules could go into effect as planned. [More]
Military Allotment Processor Must Refund Servicemembers $3.1M For Charging Hidden Fees
By 4.20.15
A company aimed at preserving the financial well-being of deployed servicemembers by processing payments to creditors on the consumers’ behalf instead contributed to customers’ financial distress by charging millions of dollars in hidden fees, the Consumer Financial Protection Bureau alleges in a new complaint. [More]
