Military Debt Collections: Wrongful Threats Prosecuted by the CFPB

The CFPB (Consumer Financial Protection Bureau) has filed suit against an automobile lender in Ohio for allegedly trying to collect on debts of military service members by threatening to inform their superiors that they violated the Uniform Code of Military Justice. Security National Automotive Acceptance Company’s alleged practices of telling customers they violated the UCMJ, calling up the line of command to inform superiors of debts and delinquencies justified by a non-negotiable contract addendum and misleading customers about court actions regarding their debts, violated the Consumer Financial Protection Act, the CFPB claims. The case is Consumer Financial Protection Bureau v. Security National Automotive Acceptance Company LLC, case number 1:15-cv-00401, in the U.S. District Court for the Southern District of Ohio.