Security National Automotive Acceptance Company to pay $3.28 million

The CFPB has announced the filing of an administrative order against Security National Automotive Acceptance Company (SNAAC), an Ohio-based auto finance company that specializes in loans to servicemembers, for engaging in illegal debt collection practices. The order requires the company to refund or credit about $2.28 million to servicemembers and other consumers who were allegedly harmed, and pay a penalty of $1 million. A complaint filed by the Bureau alleged that SNAAC exaggerated potential disciplinary action that servicemembers would face, contacted and threatened to contact commanding officers to pressure servicemembers into repayment; falsely threatened to garnish servicemembers’ wages and misled service members about imminent legal action.

Bureau press release: CFPB Orders Servicemember Auto Loan Company to Pay $3.28 Million for Illegal Debt Collection Tactics
Earlier story: CFPB files complaint against servicemember auto lender