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Soldiers get $92M in debt relief under settlement

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Thirteen states have settled an investigation into improper lending with a court agreement that is expected to provide $92 million in debt relief for 17,800 U.S. military personnel.

State Attorney General Greg Zoeller said the settlement will erase $1.5 million of bad debt for 261 military members from Indiana.

Deceptive practices by Rome Finance Co., more recently doing business as Colfax Capital Corp. and Culver Capital LLC, based in California and Georgia, included failing to accurately disclose charges and interest rates, New York's Attorney General Eric Schneiderman said Tuesday. Authorities also alleged the lenders helped retailers inflate prices, with repayments taken from soldiers' paychecks.

Authorities say military personnel will keep financed merchandise like computers and gaming systems with debt forgiven, including $2.2 million for more than 550 New York residents.

The federal Consumer Financial Protection Bureau also investigated. The states involved are Colorado, Delaware, Florida, Georgia, Kentucky, Indiana, Iowa, Massachusetts, Michigan, New York, North Carolina, Tennessee and Vermont.

Signed settlement documents were filed last month in federal bankruptcy court in California. The lending companies filed for reorganization in 2008 in a case that was converted last year to a liquidation proceeding.

"Rome Finance lured service members in with the promise of instant financing on expensive electronics, then masked the finance charges with inflated prices in marketing materials and later withheld key information on monthly bills," said Richard Cordray, director of the Consumer Financial Protection Bureau. "Today, their long run of picking the pockets of our military has come to an ignominious end."

Jeremy Katz, attorney for the bankruptcy trustee, declined to comment Tuesday about the announced settlement. He said the bankruptcy case isn't over yet.

 

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  1. My daughters' kids was removed from the home in March 2015, she has been in total compliance with the requirements of cps, she is going to court on the 4th of August. Cps had called the first team meeting last Monday to inform her that she was not in compliance, by not attending home based therapy, which is done normally with the children in the home, and now they are recommending her to have a psych evaluation, and they are also recommending that the children not be returned to the home. This is all bull hockey. In this so called team meeting which I did attend for the best interest of my child and grandbabies, I learned that no matter how much she does that cps is not trying to return the children and the concerns my daughter has is not important to cps, they only told her that she is to do as they say and not to resist or her rights will be terminated. I cant not believe the way Cps treats people knowing if they threaten you with loosing your kids you will do anything to get them back. My daughter is drug free she has never put her hands on any of her children she does not scream at her babies at all, but she is only allowed to see her kids 6 hours a week and someone has to supervise. Lets all tske a stand against the child protection services. THEY CAN NO LONGER TAKE CHILDREN FROM THERE PARENTS.

  2. Planned Parenthood has the government so trained . . .

  3. In a related story, an undercover video team released this footage of the government's search of the Planned Parenthood facilities. https://www.youtube.com/watch?v=ZXVN7QJ8m88

  4. Here is an excellent movie for those wanting some historical context, as well as encouragement to stand against dominant political forces and knaves who carry the staves of governance to enforce said dominance: http://www.copperheadthemovie.com/

  5. Not enough copperheads here to care anymore, is my guess. Otherwise, a totally pointless gesture. ... Oh wait: was this done because somebody want to avoid bad press - or was it that some weak kneed officials cravenly fear "protest" violence by "urban youths.."

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