WASHINGTON (10/29/15)--Security National Automotive Acceptance Co. (SNAAC), an auto lender specializing in loans to servicemembers, is the subject of the Consumer Financial Protection Bureau's latest administrative order.
The bureau's filing charges the auto lender with engaging in illegal debt collection practices. The order requires the company to refund or credit roughly $3.28 million to servicemembers and other consumers who were allegedly harmed, and to pay a $1 million penalty.
A CFPB release noted that a separate court order bans SNAAC from using "aggressive tactics, such as exaggeration, deception, and threats to contact commanding officers, to coerce servicemembers into making payments."
In a separate, earlier action, a federal court entered a final default judgment against Corinthian Colleges Inc., resolving a lawsuit filed by the CFPB in September 2014.
The bureau had alleged Corinthian lured tens of thousands of students into taking out private loans to cover tuition costs by advertising bogus job prospects and career services. It further alleged that the company then used illegal debt collection tactics to strong-arm students into paying back those loans while still in school.
The court ordered that Corinthian was liable for more than $530 million and prohibited the company from engaging in future misconduct.