The Fake VA Mailers: Nine Companies, $4.4 Million in Penalties

The CFPB’s sweep of deceptive VA-loan mailers — ads stating terms the lender wasn’t prepared to offer, misleading debt-elimination pitches — ended with Low VA Rates, the largest: $1.8M.

The CFPB found Low VA Rates’ direct-mail ads to servicemembers and veterans stated credit terms the company was not actually prepared to offer, including misstating the applicable APR. The mailers misrepresented the existence, nature or amount of cash or credit available and used misleading rhetorical questions.

They also failed to disclose required credit terms such as payment amounts and repayment periods, misleadingly suggested the products could eliminate debt, and made misleading comparisons of loan terms.

The Bureau’s sweep of nine mortgage companies — begun after the VA itself raised concerns about unlawful mortgage advertising — produced over $4.4 million in penalties total. This is a regulatory settlement, not a criminal conviction.

"sent consumers mailers for mortgage loans guaranteed by the U.S. Department of Veterans Affairs"
— Consumer Financial Protection Bureau

Source: Consumer Financial Protection Bureau. Case file in the VA Fraud case files — part of the VA Fraud record. Cases are published as the courts decided them; amounts are stated as the Justice Department states them (billed, stolen, or ordered in restitution, as labeled).