MILITARY LENDING ISSUES

What’s going on with military lending? Is there a pattern we should be watching?

  • On January 17, 2019 the Consumer Financial Protection Bureau (CFPB) announced that it has asked Congress to grant the agency clear authority to supervise for compliance with the Military Lending Act (MLA).
  • On January 24, 2019 the CFPB announceda settlement a broker of contracts offering high-interest credit to veterans. The Consent Order filed by the CFPB states that the Bureau found the individual violated the Consumer Financial Protection Act by misrepresenting to consumers that the offered product is a purchase of payments and not a high-interest credit offer; misrepresenting to consumers when they will receive their funds; and failing to disclose to consumers the applicable interest rate on the credit offer.
  • On January 25, 2019 the CFPB announced the release of the sixth Annual Report from the Bureau’s Office of Servicemember Affairs (OSA) highlighting issues and emerging trends facing servicemembers, veterans, and military families. The annual review allows the CFPB to highlight and address critical issues and emerging trends facing the military community, and informs the Bureau’s efforts to protect military This year’s Report describes emerging servicemember issues in the financial marketplace such as:
  • Medical, telecommunications and VA debts on servicemembers’ credit reports;
  • Student loan servicing obstacles; and
  • Automobile add-on products in the car buying process.

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