On June 17, the Consumer Financial Protection Bureau filed a lawsuit against Security National Automotive
Acceptance Company, LLC, an Ohio-based auto-finance company
specializing in lending to members of the United States military to
purchase used vehicles. Security National operates in approximately
30 states.
The CFPB's lawsuit alleges that Security National engaged in
unfair, deceptive, or abusive acts and practices (UDAAP) in its
collection of consumer debts owed by servicemembers by:
- threatening to contact delinquent
borrowers' commanding officers and exaggerating the potential
disciplinary action that servicemembers would face if their debt
remained in default;
- contacting borrowers' commanding
officers and disclosing details about borrowers' debts and
delinquencies based on language buried in a contract addendum
purporting to give Security National permission to contact the
borrower's "employer/commanding officer" to assist in
collecting in the event of
