The consumer watchdog reportedly plans to scrap supervisory examinations of military lenders
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Senate Democrats have called on Consumer Financial Protection Bureau Acting Director Mick Mulvaney to commit to upholding servicemember protections under the Military Lending Act (MLA).
A bipartisan measure passed in 2006, the MLA enacts protections for active-duty military members and their families from financial fraud, predatory loans, and credit gouging. Under the law, the annual interest rate for an extension of consumer credit to a servicemember or his or her dependents is capped at 36%.
The letter signed by 49 senators followed news reports that the CFPB is looking into scrapping supervisory examinations of military lenders. Mulvaney’s view is that the examinations are a form of proactive oversight which the MLA does not explicitly provide for.
The senators noted that the Department of Defense has attested to the fact that the MLA helps save taxpayer funds and that needlessly stopping proactive MLA examinations would be both inefficient and irresponsible.
“For generations, Americans have set partisanship aside and have made every effort to provide servicemembers and their families with all the resources and protections they deserve. We ask no less of you and, as such, seek your commitment that you will continue the CFPB’s tradition of ensuring that servicemembers and their families receive all of their MLA protections by utilizing all of the authorities available to the CFPB,” the letter said.
Related stories:
CFPB mulls end of supervisory exam of military lenders
Senate Dems urge Mulvaney to reassemble CFPB advisory board
