Warner & Kaine Applaud CFPB Action To Refund Servicemembers Victimized In USA Discounters Scam
WASHINGTON, D.C. – U.S. Senators Mark Warner and Tim Kaine today applauded the Consumer Financial Protection Bureau’s (CFPB) recent action to order Norfolk, VA-based USA Discounters to refund $350,000 to consumers victimized in a scam that misled thousands of servicemembers into paying fees for legal protections they already had and for certain services that the company failed to provide. USA Discounters will pay an additional $50,000 civil penalty.
“It’s outrageous for any retailer to prey upon military men and women through easy credit followed by overly aggressive loan collection efforts,” said Warner. “I applaud the CFPB for stopping the collection of this unnecessary fee disguised as a benefit.”
“Thanks to swift action by Director Cordray and the Consumer Financial Protection Bureau, thousands of servicemembers and their families are getting the justice they deserve,” said Kaine. “All should be on notice that the CFPB is not afraid to take bold action against those who prey on the men and women who serve our country.”
On August 6, 2014 Senators Warner and Kaine called for action in response to abusive debt collection practices against servicemembers and predatory lending practices in violation of the Servicemember Civil Relief Act (SCRA). The SCRA was implemented to protect the legal interests of servicemembers who often face unique financial circumstances as a result of their deployment or service to our nation.