CFPB Fines Auto Lender $3.3 Million For Illegal Collection Activities

The Consumer Financial Protection Bureau today assessed a $3.28 million penalty against auto lender Security National Auto Acceptance Corp. for engaging in illegal collection activities.

The lender, which specializes in loans to servicemembers, made threats exaggerating the disciplinary actions that servicemembers would face for not making their loan payments, contacted and threaten to contact superior officers to pressure servicemembers into making payments, falsely threatened to garnish wages, and misled servicemembers about potential legal action.

SNAAC must credit customers $2.28 million, stop engaging in the illegal activities it was accused of doing, and make a $1 million payment to the CFPB’s Civil Penalty Fund.

The administrative consent order is available at: http://www.consumerfinance.gov/f/201510_cfpb_consent-order-administrative-snaac.pdf

The district court consent order is available at: http://www.consumerfinance.gov/f/201510_cfpb_consent-order-district-snaac.pdf

The CFPB’s allegations in the lawsuit can be found at:http://files.consumerfinance.gov/f/201506_cfpb_complaint-security-national-automotive-acceptance-company.pdf