April 26, 2017

Brown Statement on CFPB Action Against Ohio Auto Lender Over Debt Collection Tactics

WASHINGTON, D.C. – U.S. Sen. Sherrod Brown (D-OH) – ranking member of the Senate Banking, Housing, and Urban Affairs Committee – issued the following statement regarding the Consumer Financial Protection Bureau’s action today against an Ohio-based auto lender for failing to pay restitution it owed to military servicemembers who were allegedly harmed by illegal debt collection tactics.

The CFPB fined the Security National Automotive Acceptance Company (SNAAC), based in Mason, OH, $1.25 million for failing to meet the terms of a 2015 consent order. Under the order, the company agreed to pay about $2.28 million to consumers who were allegedly harmed, and a $1 million civil penalty for abusive debt collection tactics, including illegal threats and deceptive claims. The CFPB said today that SNAAC failed to provide more than $1 million in refunds and credits it had promised to over 1,000 consumers.

"Ohio’s servicemembers make extraordinary sacrifices for our nation and deserve to be treated with respect - they shouldn’t be bullied by debt collectors who use threats and intimidation," Brown said."“I applaud the CFPB for its advocacy on behalf of our servicemembers and veterans in the face of these disturbing allegations."

The text of the consent order is available here.