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Post date: December 22 2015

A.G. Schneiderman Announces Additional $3.7m Settlement To Provide Financial Relief For Rome Finance Company Victims

Over 3,000 Consumers Nationwide To Receive Partial Victim Compensation Exceeding $3.7 Million

Schneiderman: My Office Will Fight To Protect the Financial Wellbeing Of Those Who Protect Us

WATERTOWN – Attorney General Eric T. Schneiderman today announced that, in the final chapter of Rome Finance Company, Inc. and its related entities, the federal Consumer Financial Protection Bureau announced that over 3,000 victims were issued partial compensation from a victim fund. The total amount of compensation paid exceeded $3.7 million dollars. Eligibility for these funds stemmed from a global settlement led by Attorney General Schneiderman and the CFPB along with several other states. Eighty-two victims in New York State will receive compensation from these funds.

“The financial exploitation of anyone is inexcusable, but to specifically target the brave men and women of our military is truly deplorable,” Attorney General Schneiderman said. “My office will continue to aggressively pursue predatory lenders and fight to protect the financial wellbeing of those who sacrifice so much to protect us.”

The case dealt with a military consumer lender commonly known as Rome Finance Company, based in California and Georgia. The settlement liquidated Rome Finance and its successor corporations, and provided nearly $92 million in debt relief to over 17,800 affected United States service members worldwide, marked all outstanding debt “paid in full” with consumer finance reporting agencies, and banned new business by the company and its principals. Service members kept all merchandise purchased, but debts associated therewith were erased and judgments vacated on request, including approximately 5,400 judgments located to date. Over 550 New York State service members, with a combined total of over $2.2 million in Rome Consumer debt, benefited directly from this settlement and ancillary resolutions.

Rome Finance, which did business most recently as Colfax Capital Corporation and Culver Capital, LLC, financed consumer debts exclusively to service members, typically for computers, gaming systems, and other goods and services from retailers online or at malls near military bases. Payments were extracted from the military member’s paycheck and were secured by access to a bank account.

Consumers receiving partial compensation were contacted directly by the CFPB based upon a calculation formulated by the federal agency.

Those who think they may be eligible for reimbursement should visit the CFPB’s website or calling the administrator at 1-866-591-7261. Those with additional questions are encouraged to contact Attorney General Schneiderman’s Watertown Office at 315-523-6080.

The case was handled by Assistant Attorney General In Charge Deanna Nelson. The regional offices are led by Executive Deputy Attorney General for Regional Offices Martin J. Mack.