WASHINGTON — Federal and state regulators announced a settlement Tuesday with Colfax Capital Corp. and its subsidiary over charges it "lured" 17,000 U.S. servicemembers into expensive loans with hidden charges and withheld information on billing statements.

Colfax, formerly known as Rome Finance, has already declared bankruptcy as a result of previous state and federal enforcement actions. It will provide $92 million in debt relief, including canceling $60 million in outstanding contracts owned by roughly 12,000 consumers and creating a separate trust as part of its bankruptcy to stop collections on $32 million owed by 5,000 others.

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