Rome Finance Co., Inc., n/k/a Colfax Capital Corp., and Culver Capital, LLC


14 State Attorneys General and Consumer Financial Protection Bureau Obtain $92 Million Judgment Permanently Banning Rome Finance from Lending

DENVER—The Colorado Attorney General’s Office joined with 13 state attorneys general and the Consumer Financial Protection Bureau to secure approximately $92 million total in debt relief from Rome Finance, which also did businesses as Colfax Capital Corporation and Culver Capital, LLC, for approximately 17,000 U.S. service members and other consumers harmed by the company’s predatory lending scheme. In Colorado, 740 service members will benefit from the consent order. In support of National Military Consumer Protection Day, the Office announced that the number one complaint it receives from military members is regarding debt collectors.

“The company illegally collected on loans that were void and I am pleased to tell Colorado’s military personnel that their outstanding debt to Rome Finance is now paid in full,” said Attorney General John Suthers. “It is a special honor to protect those who protect our country,” Suthers concluded.

The company would set up mall kiosks around military bases to lure consumers with instant financing contracts that required no money down. Service members used the credit to purchase computers, videogame consoles, televisions, or other consumer products. However, the signed finance agreements did not accurately disclose the amounts consumers would ultimately pay. While consumers were saddled with expensive debt, Rome Finance made millions in profit. Two of the company’s owners are now banned from consumer lending. Rome Finance has been the subject of previous state and federal enforcement actions and Colfax is currently in Chapter 7 bankruptcy.

The consent order found that Rome Finance: hid finance charges when marketing products; withheld required financial information from billing statements, and deceptively, unfairly and abusively collected debt that it was not owed. To address these violations the company will: provide approximately $92 million in debt relief; update credit reporting agencies and notify service members and other customers of debt status; cease consumer lending; pay redress for hidden finance charges; pay a civil penalty, and cooperate with service members and other consumers who seek to vacate judgments.

For more information, impacted service members and consumers may call (720) 508-6007 and visit the Colorado Attorney General’s website to review frequently asked questions. In addition, the Colorado Attorney General’s Office developed the Consumer Guide for Military Members and Their Families to help military service members and their families protect themselves. Consumers may also sign up to receive the Consumer Fraud Bulletin or visit the Office of the Attorney General’s Facebook page  for fraud alerts and important updates.

For additional information please visit the Consumer Financial Protection Bureau.

 

 


Frequently Asked Questions (FAQ)

What is the settlement about?
Who is Culver/Colfax?
How do I know if my financing or agreement is included?
Will I get a refund or money back?
What does the agreement actually do for me?
What do I need to do?
What should I do if a collection agency is contacting me or trying to collect on the agreement?
What should I do if there is a judgment entered against me?
I made all my payments, am I eligible for any relief?

 

 


What is the settlement about?

The States and CFPB believed that Rome Finance violated state and federal laws with regard to financing purchases for military members.  Because the corporate entities are now in Bankruptcy, the States and CFPB reached an agreement with the Bankruptcy Trustee to get some relief to the consumers who entered into those financing agreements.

 

Back to FAQ | Top of Page


Who is Culver/Colfax?

Culver Capital is a company that was formerly known as Rome Finance Company (GA), and Colfax Capital Corporation is a company formerly known as Rome Finance Co., Inc.

 

Back to FAQ | Top of Page


How do I know if my financing or agreement is included?

You should have received a notification from the Bankruptcy Trustee, but if not, please contact us at uccc@state.co.us and we will see if we can verify your status.  You may also wish to contact 24 Asset Management at 1-866-993-2464.

 

Back to FAQ | Top of Page


Will I get a refund or money back?

No.  The relief provided consumers is that the financing agreements will no longer be collected against nor payments accepted on the agreements.

 

Back to FAQ | Top of Page


What does the agreement actually do for me?

The terms of the agreement provide the following remedies for consumers: a) notification that the financing agreement will no longer be collected on; b) no additional payments will be required or accepted; and 3) the Bankruptcy Trustee will be contacting credit reporting agencies to report that each affected consumer has paid in full.

 

Back to FAQ | Top of Page


What do I need to do?

You do not need to do anything.  However you should not make any additional payments on the loan/purchase agreement and check your credit report to make sure it has been updated appropriately.

 

Back to FAQ | Top of Page


What should I do if a collection agency is contacting me or trying to collect on the agreement?

The agreement prohibits further collection of these accounts/contracts please visit our website at www.coloradoattorneygeneral.gov/ca and file a formal complaint.

 

Back to FAQ | Top of Page


What should I do if there was a judgment entered against me?

Please contact us at uccc@state.co.us and provide us your information.  We may be able to provide you with documentation to be submitted with the court in which judgment was entered.

 

Back to FAQ | Top of Page


I made all my payments, am I eligible for any relief?

At this time the settlement focused on relief for outstanding debt and rectifying credit reporting.  The Consumer Financial Protection Bureau has a Civil Penalty Fund and may classify this group of consumers as eligible for payments from that fund. However, IF the Bureau does so classify this group of consumers, it will contact you and notify you of any payments – you need not contact the CFPB.

 

Back to FAQ | Top of Page


 

Consumer Protection Cases

Connect

Find Colorado State Attorney General on TwitterFind Colorado State Attorney General on FacebookColorado State Attorney General RSS feed