Freedom Stores to Provide Consumer Redress for Illegal Debt Collection Against Servicemembers

The CFPBs investigation found that Freedom Stores, Inc., Freedom Acceptance, and Military Credit Services and the owners, John Melley and Leonard Melley, Jr., engaged in illegal debt collection practices in violation of the Dodd-Frank Wall Street Reform and Consumer Protection Act. These illegal practices include:

Under the terms of the consent order filed Thursday, the defendants would be required to provide over $2.5 million in relief to consumers harmed by the companies illegal actions, and to pay $100,000 to the CFPBs Civil Penalty Fund. The defendants would also be barred from further violations of the law and subject to monitoring by the CFPB.

The Bureau and the states complaint is not a finding or ruling that the defendants have actually violated the law. The proposed court order has been filed with the U.S. District Court for the Eastern District of Virginia and will have the full force of law only when signed by the presiding judge.

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Freedom Stores to Provide Consumer Redress for Illegal Debt Collection Against Servicemembers