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BOLM Announcement

Important Announcement for Customers under the Freedom Stores and Military Credit Services Programs

Consent Agreements

On May 10, 2017, each of Bank of Lake Mills, Freedom Stores, Inc. and Military Credit Services, LLC entered into a Stipulation and Consent To The Issuance Of An Order For Restitution And Order To Pay Civil Money Penalty (each such agreement referred to as a "Consent Agreement") with the Federal Deposit Insurance Corporation (“FDIC”) in connection with allegations by the FDIC that Bank of Lake Mills, Freedom Stores, Inc. and Military Credit Services, LLC engaged in certain unfair and deceptive acts and practices. Specifically, the FDIC has alleged the following:

certain consumers who obtained loans that were promoted as six-month interest free and who paid off their loans within 6 months did not receive a refund of interest;

add-on products were sold without clearly disclosing the terms of those products; and

consumers were not afforded the opportunity to pay for the purchase of optional debt cancellation coverage for loans through monthly premium payments rather than a lump sum payment.

Each of Bank of Lake Mills, Freedom Stores, Inc. and Military Credit Services, LLC stipulated to the issuance of respective Orders for Restitution and Orders to Pay Civil Monetary Penalties without admitting or denying the FDIC’s allegations. The Orders require restitution of approximately $3 million to affected customers, and civil money penalties of $151,000 against Bank of Lake Mills, $54,000 against Freedom Stores, Inc. and $37,000 against Military Credit Services, LLC.

Eligibility

In connection with the Orders, the FDIC approved a restitution plan (“Plan”), which provides that the following restitution will be paid to past and present borrowers who obtained loans from Bank of Lake Mills pursuant to its program with Freedom Stores, Inc. and Military Credit Services, LLC:

1. Any borrowers who applied for and received loans from Bank of Lake Mills through the Freedom Stores online channel between August 14, 2013 and June 30, 2015 and who paid off their loans within six months will receive a refund of any interest that was not previously refunded.

2. Any borrower who received loans from Bank of Lake Mills through the Military Credit Services channel and who purchased United Motor Club and Freedom Value Club memberships between August 14, 2013 and March 25, 2015 will receive a refund or credit, as applicable of the membership fees, along with the interest assessed in connection with the financing of the membership fees.

3. Any borrower who obtained more than one United Motor Club membership will receive a refund or credit, as applicable, of the membership fees and corresponding finance charges associated with any membership terms that overlap with another membership term.

4. Any borrower who has a current United Motor Club membership and who has purchased any memberships beyond the current term will receive a refund or credit, as applicable, of the membership fees for any future terms, a pro rata refund or credit, as applicable, of the membership fees for the current term, and a refund or credit, as applicable, of interest assessed in connection with the financing of the membership fees.

5. Any borrower who has a current Freedom Value Club membership and who has purchased any memberships beyond the current term will receive a refund or credit, as applicable, of the membership fees for any future terms, a pro rata refund or credit, as applicable, of the membership fees for the current term, and a refund or credit, as applicable, of interest assessed in connection with the financing of the membership fees.

6. Any borrower who purchased optional debt cancellation coverage will receive a refund or credit, as applicable, of the interest paid on the purchase price of this product as if the borrower had chosen to pay the purchase price through the monthly installment method, rather than the single, up-front, lump sum payment.

Claims Process

Borrowers who are eligible for restitution under the Plan are not required to take any action to receive restitution. Eligible borrowers will receive a refund check in the mail unless the borrower’s account is in default or has been charged-off, in which case the restitution will be in the form of a credit to the account rather than a refund.

Questions

If you have any questions on eligibility under the Plan, or if you would like to update your mailing address information, you may contact us at the following toll-free number: 888-812-1642. In the alternative, you can contact us online by clicking on the following link: info@bankoflakemillsrestitution.com .

 

 

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Call: 866-627-2100
Email: customerservice@militarycredit.com
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