Washington, D.C. – Today the Consumer Financial Protection Bureau (CFPB) took action against Navy Federal Credit Union for making false threats about debt collection to its members, which include active-duty military, retired servicemembers, and their families. Navy Federal Credit Union is correcting its debt collection practices and will pay roughly $23 million in redress to victims along with a civil money penalty of $5.5 million.
“Navy Government Credit Union deceived its professionals regarding the the commercial collection agency practices and you can froze people from their profile,” said CFPB Director Richard Cordray. “Creditors keeps a directly to assemble money that is due on it, nonetheless they have to adhere to federal rules while they do it.”
Navy Federal Borrowing Partnership try a national borrowing connection located in Vienna, Va. Subscription throughout the borrowing commitment is bound to users who happen to be, otherwise was in fact, U.S. armed forces servicemembers, Company out-of Protection civil team or designers, authorities teams allotted to Agency out-of Protection installment, in addition to their immediate nearest and dearest.Continue reading
