THE BURNED OVER DISTRICT

But some of the soldiers screwed by US Bank and an affiliated financial service provider have agreed to refund the monies grifted from servicemen is a car loan scam that took advantage of a direct debit program from their paychecks.

U.S. Bank, headquartered in Minneapolis, along with its partner, Dealers’ Financial Services of Lexington, Ky., violated the law by engaging in deceptive marketing and lending practices, regulators with the Consumer Financial Protection Bureau alleged Thursday.

The auto loan program created by the two companies – the Military Installment Loans and Educational Services program – was designed to appeal to young service members who were new to the car-buying process and had little or no credit history. It required them to make payments on subprime loans through the military’s so-called “discretionary allotment system,” a process that automatically deducts the money from their salaries before the funds are deposited in a bank or credit union.

Regulators said the program neglected to inform the borrowers of all the fees third-parties would charge to process the automatic deductions. It also failed to explain how often payments were due or that the intricacies of the payment schedule meant additional interest charges, according to regulators.

“MILES used the military discretionary allotment system to its advantage – requiring that service members pay straight from their paycheck before the money hit their personal bank accounts – without properly disclosing all associated fees and the way the program worked,” Richard Cordray, the consumer bureau’s director, said in a press call.

Without admitting any wrongdoing, U.S. Bank said it took regulators’ concerns seriously and no longer would participate in the loan program.

As usual, none of the guilty parties were required to admit their guilt and the personhood of their corporations shielded anyone from going to jail. They did issue high falutin' statements about their lofty ideals and awesome integrity. And the average refund fo the troops will be $100.