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CFPB and 13 State Attorneys General Obtain About $92 Million in Debt Relief for Service Members Harmed by Predatory Lending Scheme
Thursday, July 31, 2014 6:30 AM

The Consumer Financial Protection Bureau (CFPB) and 13 state attorneys general obtained approximately $92 million in debt relief from Colfax Capital Corporation and Culver Capital, LLC, also collectively known as “Rome Finance,” for about 17,000 U.S. service members and other consumers harmed by the company’s predatory lending scheme. Rome Finance lured consumers with the promise of no money down and instant financing. Rome Finance then masked expensive finance charges by artificially inflating the disclosed price of the consumer goods being sold. Rome Finance also withheld information on billing statements and illegally collected on loans that were void. Rome Finance and two of its owners are permanently banned from consumer lending.

The CFPB in its consent order found that Rome Finance:

  • Hid finance charges when marketing products
  • Withheld required financial information from billing statements
  • Deceptively, unfairly, and abusively collected debt that was not owed

To address these violations, the CFPB’s consent order requires Rome Finance to:

  • Provide approximately $92 million in debt relief
  • Update credit reporting agencies and notify service members and other consumers of debt status
  • Rome Finance and their owners must cease consumer lending
  • Pay redress for hidden finance charges
  • Pay civil money penalty
  • Cooperate with service members and other consumers who seek to vacate judgments

The full text of the CFPB’s Consent Order is available on the agency’s website.