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Settlement Erases $1.5 Million Debt For Military Members

Indiana and 12 other states reached a legal settlement with a company that allegedly scammed servicemembers into signing up for credit with 'no money down.'

military members in lines

Photo: Public Affairs Office Fort Wainright (Flickr)

The company in question allegedly targeted military members in its credit scam.

A legal settlement will erase the debt 261 members of the U.S. military who are from Indiana owe a financing company.

The Indiana Attorney General and 12 other attorneys general and the federal Consumer Financial Protection Bureau have settled a lawsuit with a consumer lending company based on California and Georgia.

Colfax Capital Corporation and Culver Capital, LLC, also known collectively as Rome Finance offered credit to consumers near military bases—promising instant financing with no money down.

But Indiana Attorney General Greg Zoeller says the company did not disclose the amount those consumers would have to pay for the financing.

The more than 200 servicemembers in Indiana that used the company had about $1.5 million of debt. That will now be considered paid in full.

Gretchen Frazee

Gretchen Frazee is a reporter/producer for WFIU and WTIU news. Prior to her current role, Frazee worked as the associate online content coordinator for WFIU/WTIU. She graduated from the University of Missouri-Columbia where she studied multimedia journalism and anthropology. You can follow her on Twitter @gretchenfrazee.

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