CFPB distributes millions to victims in veteran-related scam
CFPB said military members are at an increased risk for scams around digital payment apps and identity theft scams
(InvestigateTV) — The Consumer Financial Protection Bureau (CFPB) in 2023 distributed almost $6 million to consumers harmed by illegal lending practices targeting veterans.
Jim Rice with the CFPB spoke about their push to protect veterans.
“I think it’s important that people who are making the commitment that they do to the country get at least the things that they are owed,” Rice said.
A CFPB investigation found five people and their companies misled veterans and other consumers into selling their pension and disability payments.
“In the recent case, the companies made false statements to consumers that they were legally obligated to make payments on avoided contracts, high interest loans or loans that have a very high annual percentage rate, as well as fees that are associated with that loan,” Rice explained. “For example, a typical two-week payday loan with a $15 per $100 fee that equates to an annual percentage rate of almost 400%. They either advertise the loan at a particular rate that was exclusive of some of the fees. But when fees were added in it, it took that rate to a much higher level.”
Rice said consumers involved in the lawsuit should automatically receive a refund check.
Those who think they may be eligible and haven’t received a check can submit a claim for a refund at its website.
“We take seriously our mission to look out for the consumer, to make sure that the financial system is working well. And when it’s not that bad actors are held accountable,” Rice said.
Rice also urged consumers to make sure they read the fine print and ask questions before agreeing to a loan.
“So, it’s important that before signing a loan, the consumer should carefully review the interest rate as well as the fees they’re associated with that loan and compare it to other options that might have a lower rate,” he advised.
For those who think they have received a predatory loan, Rice recommended informing agencies immediately. Let them know what is happening so they can help.
The defendants in each of the CFPB’s cases neither admitted nor denied any allegations, but did admit the facts necessary to establish the court’s jurisdiction over them and the subject matter of these actions.
Mark Corbett | Consumer Financial Protection Bureau (consumerfinance.gov)
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