jack conway 300FRANKFORT, Ky. (7/29/14) — Attorney General Jack Conway, along with the Consumer Financial Protection Bureau and 12 other state attorneys general, announced a settlement resolving allegations that consumer lender Rome Finance, which specialized in providing consumer financing to military servicemembers, engaged in predatory lending practices that cost servicemembers tens of millions of dollars.

As a result of the settlement, 228 Kentucky servicemembers will receive $1.2 million in debt relief. In total, the nationwide settlement impacts more than 17,800 servicemembers who will receive $92 million in debt relief.

“Rome Finance targeted our servicemen and women by luring them into deceptive lending schemes with the promise of no money down and instant financing,” Attorney General Conway said. “These brave men and women work each day to protect our freedom, and the predatory actions taken by Rome Finance are unconscionable. I’m pleased that this resolution will provide military members here in Kentucky and across the country with the financial relief they are owed.”

Rome Finance, which also operated as Colfax Capital Corporation and Culver Capital, LLC, financed consumer debts primarily to servicemembers, typically for computers, gaming systems, and other goods and services from retailers online or at malls near military bases. The states and federal government allege that servicemembers were urged to purchase goods in financing agreements that hid or insufficiently disclosed extremely high rates of interest and that as a result of these financing agreements, servicemembers ultimately paid Rome Finance multiple times the retail price for the products they purchased. Payments were deducted from the servicemembers’ paychecks and were secured by access to a bank account.

The multistate lawsuit alleges multiple illegalities by the company, including failing to accurately disclose finance charges and interest rates; knowingly or recklessly assisting in the practice of financing contracts with inflated prices of goods sold; violation of the Military Lending Act for excessive interest, onerous provisions, and for requiring allotment payment backed by access to a bank account; violations of State and CFPB's unfair, deceptive, or abusive acts and practices prohibitions by financing consumer loans and/or collecting on consumer loans; and failing to provide required periodic disclosures.

Under the terms of the settlement, approved earlier this month by the U.S. Bankruptcy Court for the Northern District of California, servicemembers will keep all merchandise financed through Rome Finance, and all outstanding debts owed to the company have been erased and marked “paid in full” with consumer finance reporting agencies. In addition, today’s resolution bans new business by the company, which is no longer in operation, and its principals. Rome Finance has been the subject of previous state and federal enforcement actions and Colfax is currently in Chapter 7 bankruptcy.

Along with Attorney General Conway, participating in this national effort were the CFPB and the Attorneys General of Colorado, Delaware, Florida, Georgia, Indiana, Iowa, Massachusetts, Michigan, New York, North Carolina, Tennessee and Vermont.

Protecting Our Military Personnel

In June 2012, Attorney General Conway led a group of 20 attorneys general in securing a settlement with QuinStreet, Inc. over its operation of a website called GIBill.com. GIBill.com appeared to be a government website with information about GI Bill benefits, but it was actually a non-government related lead generator for the for-profit college industry. The settlement secured $2.5 million and transferred GIBill.com to the Department of Veterans Affairs. For more information about the settlement, click here.

You can follow Attorney General Conway on Twitter @kyoag, or visit the Attorney General’s Facebook page.

SurfKY News
Information provided by Daniel Kemp

e-max.it: your social media marketing partner

LIKE SurfKY on Facebook - Click here to LIKE us now.

© Copyright 2015 SurfKY News Group, Inc. All rights reserved. This material may not be published, broadcast, or rewritten without permission. SurfKY News encourages you to share this story on social media.

In Other News...

Pennyroyal Herb Club Annual Garden Tour Announced

HOPKINS COUNTY, Ky. (5/23/15) — Tour eight local gardens, featuring butterfly gardens, raised beds, shade gardens,… Read More

Seven Hills Neighborhood Alliance to Host Yard Sale, Neighborhood Cleanup

OWENSBORO, Ky. (5/24/15) — The Seven Hills Neighborhood Alliance will host its annual Yard Sale Fiesta on Friday and… Read More
1 DOW 18,232.02
-53.72 (-0.29%)    
2 S&P 2,126.06
-4.76 (-0.22%)    
3 NASDAQ 5,089.36
0.00 (0.00%)    

Most Read This Week

May 22, 2015 7137

Madisonville Man Charged with First-Degree Rape

by SurfKY News
May 23, 2015 6697

Missing 5-Year-Old Boy Found

by Doreen Dennis, SurfKY News
May 19, 2015 6374

Owensboro Health Proposes Building $15M Health…

by Doreen Dennis, SurfKY News
May 19, 2015 4236

Two Charged with Marijuana Possession after…

by SurfKY News
May 20, 2015 3514

Pennyrile Forest State Resort Park Holding Beach…

by Gil Lawson

Most Read This Month

May 15, 2015 10684

New Madisonville Business In Full Operation Soon

by Tammy Holloway, SurfKY News
May 15, 2015 7489

Investigation of Local Barber Shop Leads to Drug…

by SurfKY News

Stories Trending Now

May 25, 2015 2956

Can Sunscreen Save Your Life?

by Melissa Patrick
May 25, 2015 1699

UPDATE - MPD Seeks Three in Residential Robbery

by SurfKY News
May 25, 2015 1412

Hopkins Man Injured in Muhlenberg Motorcycle…

by SurfKY News
May 24, 2015 1388

MCC's Felicia Johnson Receives State KCTCS Award

by Tammy Holloway, SurfKY News
May 23, 2015 1158

'Cooking for the Cure' Fundraiser Brings Out…

by Tammy Holloway, SurfKY News
May 25, 2015 940

Damascus Road House Leads Young People to Christ

by Tammy Holloway, SurfKY News
May 25, 2015 892

Seniors Celebrate with Cook-out, Games, Fellowship

by Tammy Holloway, SurfKY News
May 24, 2015 856

Reading Solutions Offers Students a Hand in…

by Charles W. Riley II, SurfKY News
May 24, 2015 701

Caldwell County Native Helping Unwrap Secrets of…

by Whitney Harder
May 24, 2015 594

Prosecutors from Kentucky, Tennessee to Attend…

by Leland Hulbert