{"id":69154,"date":"2019-01-18T21:43:21","date_gmt":"2019-01-18T21:43:21","guid":{"rendered":"https:\/\/one.sightlinemg.com\/airforcetimes\/uncategorized\/2019\/01\/18\/whos-watching-payday-lenders-feds-ask-for-specific-authority-to-protect-troops-finances\/"},"modified":"2026-08-08T14:28:36","modified_gmt":"2026-08-08T14:28:36","slug":"whos-watching-payday-lenders-feds-ask-for-specific-authority-to-protect-troops-finances","status":"publish","type":"post","link":"https:\/\/one.sightlinemg.com\/airforcetimes\/management\/pay-benefits\/2019\/01\/18\/whos-watching-payday-lenders-feds-ask-for-specific-authority-to-protect-troops-finances\/","title":{"rendered":"Who\u2019s watching payday lenders? Feds ask for specific authority to protect troops\u2019 finances"},"content":{"rendered":"\n

The director of a federal agency has asked Congress for explicit authority to strengthen its enforcement of financial protections<\/a> for service members.<\/p>\n\n\n\n

The Consumer Financial Protection Bureau wants specific authority to conduct examinations of payday lenders and others under their jurisdiction<\/a> to ensure they\u2019re complying with the Military Lending Act (MLA)<\/a>.<\/p>\n\n\n\n

Among other things, the MLA limits interest rates that can be charged to active-duty members and their dependents to 36 percent annual percentage rate. Last year, the CFPB pulled back on its regular examinations of payday lenders and others to make sure they\u2019re complying with that law. CFPB determined they didn\u2019t have authority to do those examinations, although they have been conducting the MLA exams for years.<\/p>\n\n\n\n

In announcing the legislative proposal submitted on Jan. 17, CFPB Director Kathleen Kraninger said the bureau\u2019s commitment to the well-being of service members \u201cincludes ensuring that lenders subject to our jurisdiction comply with the Military Lending Act so our service members and their families are provided with the protections of that law.<\/p>\n\n\n\n

\u201cThat\u2019s why I have asked Congress to explicitly grant the bureau authority to conduct examinations specifically intended to review compliance with the MLA,\u201d said Kraninger, who became director of the CFPB in December.<\/p>\n\n\n\n

Kraninger noted that she was pleased to see that legislation proposed recently in the House is also aimed at granting the bureau this authority.<\/p>\n\n\n\n

Consumer advocates, military community advocates<\/a> and senators have urged the bureau to continue these MLA examinations, citing the need to proactively protect service members.<\/p>\n\n\n\n

In an interview with Military Times, Kraninger said she has heard from a number of lawmakers that this issue is important to them. \u201cIt makes perfect sense to make sure that Congress clarifies\u201d the authority, she said. \u201cAs we\u2019ve looked at our authority, it\u2019s not clear in this respect.<\/p>\n\n\n\n

Kraninger said CFPB examiners who monitor lenders for compliance with other laws and regulations do have the ability to highlight concerns or violations of the Military Lending Act.<\/p>\n\n\n\n

\u201cIf examiners see something related to the MLA, they absolutely cite it and make the company aware of it, and to the extent it needs to be taken to the next level, we have full enforcement authority when it comes the MLA,\u201d Kraninger said.<\/p>\n\n\n\n

\u201cWhat we\u2019re seeking is narrow, explicit authority to do exams particularly on the MLA, to actively go in and do a concerted MLA-related exam.\u201d<\/p>\n\n\n\t