Agreement Halts Lending Company Targeting Iowa Military

DES MOINES — A coalition of prosecutors has halted a predatory loan operation that targeted U.S. service members.Nearly $92 million in relief is expected to come to Iowa and 12 other states due to a court agreement with 13 states and the Consumer Financial Protection Bureau that puts the lender out of business, according to Iowa Attorney General Tom Miller.Rome Finance Company — based in California and Georgia — must liquidate operations and provide more than $91 million in debt relief to at least 17,800 consumers, including more than 100 Iowans.Miller said the agreement means the company must stop collecting debt, forgive outstanding balances and help repair damaged credit.Along with requiring the company to mark all outstanding debts as “paid in full” with consumer finance reporting agencies, the agreement bans the company and its principals from engaging in any form of future consumer lending, and demands cooperation in vacating judgments — which include more than 5,400 additional consumers.Miller expects the agreement to aid more than 23,000 service members and veterans.James Wilson, 29, a staff sergeant with the Iowa Air National Guard from Winterset, said he purchased a laptop computer through the company via a monthly allotment that would have cost him about $5,000 — but half of the financing payments will be halted under the agreement.“They were very military friendly so I was trustworthy with them right off the bat,” said Wilson, who admitted he did not keep close enough tabs on the financing arrangement and was “a little angry and slightly embarrassed” by the experience.