CFPB fines auto lender for violating 2015 consent order

CFPB auto lender consent orderOn April 26, the CFPB announced that it had issued a $1.25 million civil money penalty against Security National Automotive Acceptance Company (SNAAC), an auto finance company that specializes in lending to service members, for allegedly violating an October 2015 consent order. According to the Bureau, SNAAC failed to comply with the Bureau’s 2015 consent by not providing over $1 million in refunds and credits to consumers.

New Military Lending Act Requirements

Last July, the Department of Defense published a final rule to amend and dramatically expand the scope of the Military Lending Act (MLA). First enacted in 2007, the MLA was designed to provide specific protections for active duty service members and their dependents in consumer credit transactions. The MLA initially applied to three specific “consumer credit” products: payday loans, vehicle title loans, and tax refund anticipation loans.