Consumer Finance Insights
May 6, 2016

Pennsylvania AG Sues Financial Services Company for Defrauding Veterans

On May 5, 2016, the Pennsylvania Attorney General announced the filing of a civil lawsuit in the Clinton County (PA) Court of Common Pleas against an Ohio financial services company and its owner for misleading at least four Pennsylvania consumers, including three military veterans.  The lawsuit states that the company catered specifically to veterans, offering services such as lines of credit, mortgage refinancing, and credit improvement.  It alleges that the company failed to provide those services and subsequently failed to provide refunds to the defrauded consumers.  ​The lawsuit further alleges that the company and its owner violated the Pennsylvania Credit Services Act because they failed to possess the requisite registration, bonding or trust account; failed to adhere to legally required contract provisions; and failed to make other required disclosures.

According to the Attorney General, its Bureau of Consumer Protection is seeking restitution for the consumers who suffered losses as a result of the company’s and its owner’s​ actions.  The lawsuit is also seeking $1,000 for each violation of Pennsylvania’s Unfair Trade Practices and Consumer Protection Law and $3,000 for every violation involving a consumer over the age of 60.