{"id":81741,"date":"2019-11-06T10:51:22","date_gmt":"2019-11-06T10:51:22","guid":{"rendered":"https:\/\/one.sightlinemg.com\/militarytimes\/uncategorized\/2019\/11\/06\/more-protection-is-needed-for-service-members-veterans-and-their-families-from-predatory-loans\/"},"modified":"2026-08-08T08:04:54","modified_gmt":"2026-08-08T08:04:54","slug":"more-protection-is-needed-for-service-members-veterans-and-their-families-from-predatory-loans","status":"publish","type":"post","link":"https:\/\/one.sightlinemg.com\/militarytimes\/commentary\/2019\/11\/06\/more-protection-is-needed-for-service-members-veterans-and-their-families-from-predatory-loans\/","title":{"rendered":"All Americans deserve the same protection from predatory loans that service members have"},"content":{"rendered":"\n

In 2006, Republicans and Democrats in Congress set aside partisanship to adopt a law that protects active-duty service members and their families from predatory loans. Lawmakers passed the Military Lending Act after learning that payday lenders making triple-digit interest rate loans were trapping service members by clustering around the gates of our nation\u2019s military installations. While the law does not solve every consumer challenge facing service members, it addresses some of the very worst abuses by imposing a traditional 36 percent interest rate cap on loans to active-duty service members and their families.<\/p>\n\n\n\n

The Department of Defense agreed with Congress and has done its part by issuing regulations in 2007 to implement the law. Then, DoD strengthened and expanded those regulations in 2015 to close loopholes used by unscrupulous lenders to circumvent congressional intent. We served as attorneys in the office DoD tasked with implementing the Military Lending Act, and spent many years fighting to preserve and enhance these critical protections for our military families.<\/p>\n\n\n\n

The MLA has made a difference for military families. The number of payday loan companies targeting military families around bases has dropped off. And lenders are prohibited from upselling service members on sketchy, over-priced \u201cadd-ons\u201d to credit cards and many other forms of credit. These strong consumer protections continue to make sense because they help to prevent unnecessary service member separations due to financial hardship and instability.<\/p>\n\n\n\n

Unfortunately, storm clouds may be on the horizon for military consumer protection. In the past year, the Consumer Financial Protection Bureau has reversed course<\/a> by refusing to conduct preventative audits critical in enforcing the law. The CFPB is the federal government\u2019s primary civilian agency tasked with protecting consumers as well as enforcing the Military Lending Act.<\/p>\n\n\n\n

And, armed with bogus statistics, some auto dealers have been lobbying for a new loophole that would allow them to jack up price of auto loans even higher than currently allowed.<\/p>\n\n\n\t