Consumer Bureau Action Tracker

CFPB – Fort Knox National Company, Military Assistance Company, LLC


State

Nationwide

target

Fort Knox National Company, Military Assistance Company, LLC

Topics

Enforcement, Add-On Products, Servicemembers, Credit Cards

In April 2015, the CFPB ordered Fort Knox National Company and its subsidiary, Military Assistance Company to pay “nearly $3.1 million in consumer relief” for charging “millions of dollars in hidden fees” to soldiers, sailors, Marines, and other military servicemembers.

  • The CFPB ordered Fort Knox National Company and its subsidiary Military Assistance Company to pay “nearly $3.1 million in consumer relief” for charging “millions of dollars in hidden fees” to soldiers, sailors, Marines, and other service members. [Kevin McCoy, “Servicemembers win $3.1M relief over hidden fees,” USA Today, 04/21/15]
  • “According to the CFPB, Fort Knox National Company, through its subsidiary, Military Assistance Company (MAC), is one of the nation’s largest third-party processors of military allotments. Under the military allotment system, service members can deduct payments directly from their wages.” [Nicholas Ballasy, “CFPB Fines Payment Processors Millions,” Credit Union Times, 04/20/15]
  • Military Assistance Company allegedly “failed to disclose fees charged against residual balances — such as a $5 charge to send a letter to a servicemember about her or his balance or to send a similar letter to a current or past creditor. The charges also included a recurring $12 to $20 fee if the account remained idle with a positive balance for more than six months. Servicemembers were not told when and how they would be charged service fees on residual balances.” [Kevin McCoy, “Servicemembers win $3.1M relief over hidden fees,” USA Today, 04/21/15]

Status

Inactive or Resolved


2015-CFPB-0008 4/20/2015 4/20/2015

CFPB Takes Action Against Military Allotment Processor for Charging Servicemembers Hidden Fees
http://www.consumerfinance.gov/policy-compliance/enforcement/actions/military-assistance-company/

  • Consumer Financial Protection Bureau (CFPB)
  • Administrative filing
  • None
  • Nonbank
  • $3,100,000
  • Not Available

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