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Vehicle finance lender sued for going to commanding officers of delinquent military members

By Shaun Zinck | Jul 2, 2015

Cfpb richard cordray
Richard Cordray, director of the U.S. Consumer Financial Protection Bureau, has filed a lawsuit against Security National Automotive Acceptance Company for allegedly violating federal law when attempting to collect on debts. | U.S. Consumer Financial Protection Bureau

CINCINNATI (Legal Newsline) - The Consumer Financial Protection Bureau has filed a lawsuit against an auto-financing company for allegedly violating federal law when attempting to collect on debt.

The lawsuit was filed on June 17 in United States District Court in Ohio against Security National Automotive Acceptance Company, based in Ohio, which finances vehicle purchases for U.S. military personnel.

The company is accused of threatening to contact delinquent borrowers' commanding officers about debts and delinquencies. In some instances Security National Automotive actually did contact commanding officers and disclosed details of the debt, the lawsuit said.

The company is also accused of making misleading statements to potential borrowers on the impact remaining delinquent on loans could have on their military careers and tax liability. The bureau is bringing the lawsuit under violations of the Consumer Financial Protection Act of 2010.

The consumer protection bureau is seeking an unspecified amount in damages against the company plus court costs. The suit is also seeking civil penalties against National Security Automotive.

The bureau is represented by attorneys Anthony Alexis, enforcement director; Jeffrey Paul Ehrlich, deputy enforcement director; John C. Wells, assistant litigation deputy; and Maxwell S. Peltz, senior litigation counsel.

United States District Court for the Southern District of Ohio-Western Division case number 1:15-cv-00401.

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