U.S. Bank, partner to refund $6.5 mln over auto lending
WASHINGTON, June 27 (Reuters) - The U.S. Consumer Financial Protection Bureau on Thursday said it ordered U.S. Bancorp's U.S. Bank and a nonbank partner company to refund about $6.5 million to U.S. military personnel over auto lending practices regulators said were deceptive.
U.S. Bank and Dealers' Financial Services of Lexington, Kentucky, failed to properly disclose all of the fees charged to participants in an auto loan program for active-duty military, the CFPB said.
The companies have agreed to stop deceptive marketing and lending practices and improve disclosures, the bureau said.
U.S. Bank will pay $3.2 million and Dealers' Financial Services will pay $3.3 million to more than 50,000 members of the armed services who had outstanding loans between January 2010 and now, the CFPB said.
The companies neither admitted nor denied the bureau's findings, the CFPB said.