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Fort Sill FCU CEO Comments on Shutdown of USA Discounters' Service Member Fee Scam
Friday, August 15, 2014 6:40 AM

The Consumer Financial Protection Bureau (CFPB) has put an end to a service member fee scam run by USA Discounters, Ltd., a company that operates a chain of retail stores near military bases and offers financing for purchases. The company has several stores in Texas, including one in El Paso, Killeen and San Antonio, as well as a store in Lawton, Okla.

USA Discounters reportedly tricked thousands of service members into paying fees for legal protections service members already had and for certain services that the company failed to provide. The CFPB has obtained more than $350,000 in refunds for service members harmed by this scam, and USA Discounters will pay an additional $50,000 civil penalty.

Denise Floyd, SCMS, CEO of Fort Sill FCU in Lawton, Okla., says she was surprised and happy to hear about the CFPB holding USA Discounters accountable for their actions regarding their unfair and deceptive practices to our service members. 

“We strive to help the service members by providing services and products to fit their lifestyles while controlling the fees they pay,” Floyd tells the Leaguer. “Businesses that take advantage of our service members need to be held accountable and I am glad the CFPB has handled this situation by doing the right thing for our service members.”

The CFPB found that USA Discounters harmed service members with unfair and deceptive acts and practices, including:

  • Deceptively marketing its own legal obligation as a service to service members
  • Misleading servicemembers into believing they would have an independent representative
  • Failing to provide actual services to struggling borrowers

The full text of the CFPB’s Consent Order is available at