Freedom Stores to provide over $2.5 million in refunds and penalties

CFPB_2tone_Horiz400The Consumer Financial Protection Bureau (CFPB) and the Attorneys General of North Carolina and Virginia took action today to protect military servicemembers from illegal debt collection practices. The CFPB alleges that Freedom Stores, Inc., Freedom Acceptance Corporation, and Military Credit Services LLC used illegal tactics to collect debts, including filing illegal lawsuits, debiting consumers’ accounts without authorization, and contacting servicemembers’ commanding officers. The CFPB and the states filed a consent order in federal court to require the three companies and their owners and chief officers, John Melley and Leonard Melley, Jr. to provide over $2.5 million in consumer redress and to pay a $100,000 civil penalty.

Read the full article on the Consumer Financial Protection Bureau’s web site at: http://www.consumerfinance.gov/blog/freedom-stores-to-provide-over-2-5-million-in-refunds-and-penalties/