In June 2013, the CFPB issued a consent order to U.S. Bank National Association and Dealers’ Financial Services for misleading “military service members who participated in an auto lending program.” The CFPB alleged that both companies “failed to properly disclose costs associated with repaying auto loans’ made to service members.” U.S Bank agreed to repay customers $3.2 million and Dealer’s Financial Services will repay $3.3 million. There were more than 50,000 service members affected, “providng an average reimbursement of less than $130 per customer.”

• The CFPB issued a consent order to U.S. Bank National Association. [CFPB file no. 2013-CFPB-0003 (U.S. Bank National Association), filed 06/26/13]

• The CFPB issued a consent order to Dealers’ Financial Services, LLC. [CFPB file no. 2013-CFPB-0004 (Dealers’ Financial Services, LLC.), filed 06/26/13]

• The CFPB claimed that U.S. Bank and Dealers’ Financial Services “misled military service members who participated in an auto lending program.” Both companies “‘failed to properly disclose costs associated with repaying auto loans’ made to service members under U.S. Bank’s, _Military Installment Loans and Educational Service program.” The program allowed for “young service members with minimal credit history to finance auto purchases.”

The CFPB alleged that U.S. Bank “failed to properly disclose a fee that resulted in paying an additional $180 over the life of a 60-month loan” and Dealers’ Financial Services’ “understated the costs of a vehicle service contract and insurance sold with the loans, both of which raised costs.”

U.S Bank agreed to repay customers $3.2 million and Dealer’s Financial Services will repay $3.3 million. There were more than 50,000 service members affected, “providng an average reimbursement of less than $130 per customer.” [Carter Dougherty, “2 auto lenders must repay fees to military members,” Bloomberg News, 06/30/13]