CFPB obtains $92M for predatory lending scheme
Service members given false promises
The Consumer Financial Protection Bureau and 13 state attorneys general obtained approximately $92 million in debt relief for about 17,000 U.S. service members and other consumers harmed by Colfax Capital Corporation and Culver Capital’s predatory lending scheme.
The company, also collectively known as Rome Finance, was accused of luring consumers with the promise of no money down and instant financing.
The CFPB found in its consent order that Rome Finance hid finance charges when marketing products and withheld required financial information from billing statements. In addition, it deceptively, unfairly and abusively collected debt that was not allowed.
In addition to the $92 million in debt relief, the company will update credit reporting agencies and notify service members and other consumers of debt status.
Rome Finance and their owners must also cease consumer lending, pay redress for hidden finance charges, pay a civil money penalty and cooperate with service members and other consumers who seek to vacate judgments.