CFPB, Two State AGs, Act Against Service Member Debt Collectors
December 22, 2014
The CFPB and the attorneys general of North Carolina and Virginia brought an enforcement action against three related firms last week, alleging they used illegal debt collection practices against U.S. military service members. Freedom Stores (also known as Freedom Furniture and Electronics) is a Virginia-based retailer that caters to U.S. military members with stores located near military bases nationwide. Freedom Stores offers credit to consumers purchasing its merchandise and transfers the contracts to an affiliated company, Freedom Acceptance Corp. Owners and top executives John Melley and Leonard Melley Jr. also own Military Credit Services, which provides financing for purchases made at over 300 independent consumer-goods retailers, primarily catering to service members. The CFPB and the states filed a proposed consent ...