Consumer Bureau Action Tracker

CFPB – Colfax Capital


State

Nationwide

target

Colfax Capital Corporation, Culver Capital, LLC, Ronald Wilson, William Collins

Topics

Enforcement, Add-On Products, Servicemembers, Credit Cards

In July 2014, the CFPB ordered “Rome Finance Co.” (dba Colfax Capital) to provide $92 million in debt relief to 17,000 consumers nationwide after a making predatory loans for years. The company “was accused of targeting military members with ‘instant financing’ offers for purchases of pricey electronics.” The CFPB said the company inflated prices to hide the true finance charges, trapping service members in contracts that ‘generated millions of dollars for the company and substantial debt for its customers.’ In some cases, it said, consumers were given documents stating they were paying a 16 percent annual percentage rate, when in actuality, the rate was 100 percent.”

  • “In a final federal slapdown, a Bay Area company accused of thousands of fraudulent consumer loans — primarily against military service members — was ordered Tuesday to provide $92 million in debt relief to 17,000 consumers nationwide, including more than 1,100 in California. The enforcement action was a joint effort by the federal Consumer Financial Protection Bureau in Washington, D.C., and 13 state attorneys general.” [Claudia Buck, “Bay Area company hit with $92 million penalty for predatory loans to military members,” Sacramento Bee, 07/29/14]
  • “Rome Finance Co., based in Concord, was accused of targeting military members with ‘instant financing’ offers for purchases of pricey electronics — computers, laptops, gaming consoles and TVs — often sold in mall kiosks. Even after a 2011 settlement in California regarding the practices, the company continued making predatory loans under other names, Culver Capital LLC and Colfax Capital Corp., across the country, which led to the CFPBs action.” [Claudia Buck, “Bay Area company hit with $92 million penalty for predatory loans to military members,” Sacramento Bee, 07/29/14]
  • “According to the CFPB’s complaint, Rome Finance inflated prices to hide the true finance charges, trapping service members in contracts that ‘generated millions of dollars for the company and substantial debt for its customers.’ In some cases, it said, consumers were given documents stating they were paying a 16 percent annual percentage rate, when in actuality, the rate was 100 percent.” [Claudia Buck, “Bay Area company hit with $92 million penalty for predatory loans to military members,” Sacramento Bee, 07/29/14]

Status

Inactive or Resolved


2014-CFPB-0009 7/29/2014 7/29/2014

CFPB and 13 State Attorneys General Obtain About $92 Million in Debt Relief for Servicemembers Harmed by Predatory Lending Scheme
http://www.consumerfinance.gov/policy-compliance/enforcement/actions/colfax-capital-corporation-culver-capital-llc-ronald-wilson-william-collins/

  • Consumer Financial Protection Bureau (CFPB)
  • Administrative filing
  • None
  • Nonbank
  • $92,000,000
  • 17,000

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