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U.S. Bank Must Refund $6.5 Million To Troops Due To Shady Car Loans

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Car for sale sign.

An estimated 50,000 U.S. military service members will receive refunds from U.S. Bank and one of its partners because of deceptive car loans the bank and its partner offered the military community.

The Consumer Financial Protection Bureau is ordering U.S. Bank and Dealers Financial Services to return about $6.5 million to service members.

American Forces Press Service estimates each service member due a refund will get an average of $100.

CFPB Director Richard Cordray said of U.S. Bank and DFS:

“We’ve determined that the companies developed a joint program that engaged in deceptive marketing and lending practices while providing subprime auto loans to tens of thousands of active-duty military members."

U.S. Bank and DFS created the Military Installment Loans and Educational Services program (MILES) to sell subprime auto loans specifically to active-duty military. Cordray said the companies failed to disclose to troops details about the total payments for the loans, additional finance charges, and the annual percentage rate.

Comments

Avatar for user 'RegularChristian'

RegularChristian | June 28, 2013 at 10:03 a.m. ― 1 year, 3 months ago

A bank engaged in deceptive behavior?

Sacre Bleu!

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Avatar for user 'inAmust'

inAmust | November 24, 2013 at 9:08 p.m. ― 11 months ago

This is a good news for those who availed the loan but they get nothing in return. Saving cash to purchase a brand new vehicle is not the simplest thing you can do. That is why it is so essential to go to a site I came across and get pre-approved for a car loan. Find the vehicle that you love, and you also will already have the cash ready for the transaction. When have you desired details about a new or pre-owned motor vehicle and resorted to an online search on “http://www.cardealexpert.com/auto-loans?

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