Omni Financial will pay $2.175 million to resolve CFPB claims that it violated the Military Lending Act by requiring active duty service members to repay installment loans by “allotment.”
Las Vegas-based Omni, which operates under the names Omni Financial and Omni Military Loans, required service members to direct a portion of their paychecks to repay installment loans ranging from $500 to $1,000, the Consumer Financial Protection Bureau said in a Wednesday consent order.
The Department of Defense runs the allotment system, which allows service members to designate a portion of their paycheck to certain recipients. The 2006 Military Lending Act ...
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