The world's largest credit union has been ordered by the CFPB to pay $28.5 million in restitution and fines to settle civil charges alleging it made "false threats" about debt collection to its members.The Consumer Financial Protection Bureau said that Navy Federal CU "unfairly" restricted access when its borrowers had a delinquent loan. The credit union settled the charges without admitting or denying wrongdoing. It has over $77.8 billion in assets as of June 30th.
The CFPB claims that the credit union sent letters to some members threatening to take legal action if they did not pay. For some, the letters also threatened to garnish consumers' wages, a remedy that is only available through a court order. The period in question spans January 2013 through July 2015 and affected about 193,000 members. The regulator also says that some of the debt collection letters also made false threats, saying for instance that customers would "find it difficult, if not impossible, to obtain additional credit" because of their "unsatisfactory credit rating" with the credit union.
Read the full story on MSN Money.
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