Welcome to DU!
The truly grassroots left-of-center political community where regular people, not algorithms, drive the discussions and set the standards.
Join the community:
Create a free account
Support DU (and get rid of ads!):
Become a Star Member
Latest Breaking News
Editorials & Other Articles
General Discussion
The DU Lounge
All Forums
Issue Forums
Culture Forums
Alliance Forums
Region Forums
Support Forums
Help & Search
Veterans
Related: About this forumTroops allegedly misled by car loan program to get refunds
http://www.mcclatchydc.com/2013/06/27/195222/troops-allegedly-misled-by-car.htmlTroops allegedly misled by car loan program to get refunds
By Lindsay Wise | McClatchy Washington Bureau
Posted on Thursday, June 27, 2013
WASHINGTON U.S. Bank and a Kentucky-based financial services provider agreed to refund $6.5 million to 50,000 military service members after federal regulators accused both companies of misleading borrowers about fees and costs associated with an auto loans program that targeted active-duty troops.
U.S. Bank, headquartered in Minneapolis, along with its partner, Dealers Financial Services of Lexington, Ky., violated the law by engaging in deceptive marketing and lending practices, regulators with the Consumer Financial Protection Bureau alleged Thursday.
The auto loan program created by the two companies the Military Installment Loans and Educational Services program was designed to appeal to young service members who were new to the car-buying process and had little or no credit history. It required them to make payments on subprime loans through the militarys so-called discretionary allotment system, a process that automatically deducts the money from their salaries before the funds are deposited in a bank or credit union.
Regulators said the program neglected to inform the borrowers of all the fees third-parties would charge to process the automatic deductions. It also failed to explain how often payments were due or that the intricacies of the payment schedule meant additional interest charges, according to regulators.
InfoView thread info, including edit history
TrashPut this thread in your Trash Can (My DU » Trash Can)
BookmarkAdd this thread to your Bookmarks (My DU » Bookmarks)
2 replies, 1787 views
ShareGet links to this post and/or share on social media
AlertAlert this post for a rule violation
PowersThere are no powers you can use on this post
EditCannot edit other people's posts
ReplyReply to this post
EditCannot edit other people's posts
Rec (2)
ReplyReply to this post
2 replies
= new reply since forum marked as read
Highlight:
NoneDon't highlight anything
5 newestHighlight 5 most recent replies
Troops allegedly misled by car loan program to get refunds (Original Post)
unhappycamper
Jun 2013
OP
Inkfreak
(1,695 posts)1. There is massive industry preying on soldiers
I was one of them. These car dealerships thrive on young soldiers arriving at a base/post who need/want car. I remember at Ft. Bragg there were tons of ads placed around reception for us to see. The NCOs did their best to warn us. But, I was still suckered. Young & dumb I guess.
WooWooWoo
(454 posts)2. I was actually taken advantage of by this program my first year in
I bought a 2007 Mitusbishi Eclipse for $15,000 back in 2010.
Three years later, when I was about getting ready to get out, after three years of payments of $450 a month, I still had a balance of over $12,000.
That's because this predatory program charged me 23% interest. I wonder if I can get in on this refund, and if so, how?