Man pays $1 fine for selling deceptive, high-interest loans to veterans

Kaylah Jackson
January 28, 2019 - 5:33 pm

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One dollar.

That’s how much Mark Corbett will pay the Consumer Finance Protection Bureau (CFPB) for targeting veterans in his predatory lending practices.

According to the consent order, Corbett worked as a broker for Doe Companies where he falsely marketed credit offers as pension or disability payments. Through these contracts, veterans would receive lump-sum payments and in exchange would repay investors using their monthly pension or disability payments over the course of five to ten years.

Veterans would be required to go through their VA or DFAS online portal and alter their pension direct-deposits to route back to a bank account controlled by Doe Companies or their agents. By law, agreements, where another person acquires the right to receive a veteran’s pension payments, is illegal, but Corbett failed to disclose that information to veterans he communicated with.

If the contracts didn’t amount to the full pension, the veteran would receive the rest of their pension or monthly allotments back in their bank accounts. Corbett consistently told veterans they would receive their funds on a particular date or within a certain time period but on many occasions, veterans experienced delays, some lasting for as long as several months.

He also didn’t communicate the interest’s rates from the transactions to veterans who were affected.

According to the consent order, Corbett is currently prohibited from “brokering, offering, and arranging agreements between veterans and third parties under which the veteran purports to see a future right to an income stream from the veteran’s pension.”

Corbett was named in another lawsuit in 2017, wherein three veterans claimed he, among others, swindled the group into selling their retirement benefits or disability payments in exchange for lump-sums of money.

In 2018, the CFPB made the decision to suspend examinations of financial firms for compliance with the Military Lending Act. The act, which was enacted in 2006, was implemented by the Department of Defense to prevent military members and their family from destructive lending practices.

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