If you are in the military, you should know that several military Lending Act lawsuits are pending. These lawsuits aim to protect the rights of military service members by enforcing the laws that regulate private lending. LendUp, for example, is sued by a service member for violating the Military Lending Act. In response, the Defense Department reverted the language in Question No. 2 related to GAP insurance.
Class action lawsuit claims plaintiffs are entitled to remedies
The class action lawsuit in Kulig v. Midland Funding relates to credit cards issued by Midland Funding, a Delaware bank. The law states that collection suits must be filed within three years of a consumer defaulting on a debt. Midland Funding routinely files collection suits well beyond this deadline. The suit was eventually settled on an individual basis. However, the case shows that the Military Lending Act can give consumers certain remedies.
Bluegreen has denied the allegations made by the plaintiffs. Plaintiffs allege that the company engaged in the unauthorized practice of law and abused the legal process by marketing VOIs to its customers. They also seek attorneys’ fees and injunctive relief. The court certified a class of consumers for the unauthorized practice of law claim on August 31, 2020. The court dismissed the claims involving abuse of process on January 11, 2021. The case continues to be litigated in discovery.
LendUp violates the Military Lending Act
The Consumer Financial Protection Bureau has announced that LendUp violated the Military Lending Act by not providing military members with the disclosures and loan terms they were entitled to under the law. The complaint claims that LendUp violated the military-specific cap on Military Annual Percentage Rates, the ban on mandatory arbitration, and other requirements outlined in the law. As a result, the company is being investigated by the CFPB.
The CFPB has filed a complaint against LendUp, an online lender accused of violating the Military Lending Act. The complaint alleges that LendUp did not provide consumers with the required disclosures, including the MAPR, all of the required Regulation Z disclosures, and a clear explanation of the payment obligation. The CFPB alleges that LendUp extended over 4,100 single-payment loans and 1,200 installment loans, each of which violated the military-specific loan disclosure requirements.
Guaranteed asset protection coverage is directly related to the purchase of a vehicle
Guaranteed Asset Protection coverage is a type of auto insurance policy that helps cover the difference between the actual cash value of a vehicle and the loan balance if it is totaled in an accident. It is generally a small monthly payment and could save you thousands of dollars in loan payments if your vehicle is totaled. In addition, it is directly related to the purchase of a vehicle.
This policy protects your investment in your vehicle in case of theft or total loss. With this coverage, you will be compensated for the gap between the loan balance and the replacement value of your vehicle. The best way to decide which coverage to purchase depends on your specific needs of you and your financial situation. Generally, auto insurance does not provide enough coverage to cover all costs of repair or replacement, so you should consider purchasing guaranteed asset protection coverage.
DoD reverts language for Question No. 2 related to GAP insurance
Recently, the Department of Defense (DoD) reverted the language for Question No. 2 related to GAP insurance. It amended an interpretive rule that allowed credit transactions for motor vehicle purchases to include GAP insurance and optional leather seats. Credit transactions may also include other credit insurance premiums, such as extended vehicle warranties and GAP insurance premiums. In addition, these transactions are secured by the vehicle, not the credit transaction.