Fort Drum (WTNY) - A national lending company that targeted members of the military has been put out of business thanks to an investigation by New York and several other states.
According to the New York State Attorney General's Office a settlement has been reached with Rome Finance Company, one that effectively shuts down the company and provides $92 million in debt relief to nearly 18,000 members of the military.
Among them, 550 military personnel in New York State, including Ft. Drum.
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.
It was alleged that the company failed to actively disclose finance charges and interest rates and financed high contracts with inflated prices of goods sold.
The settlement allows the victims to keep their merchandise and they will have their debts wiped clean.