Group of professionals discuss finance

Breaking news and expert analysis on legal and compliance issues

[Back To Home][Back To Archives]

From Banking and Finance Law Daily, December 17, 2018

House Dems urge Kraninger to enforce consumer protections for servicemember

By Lisa M. Goolik, J.D.

The Democratic members of the House Committee on Financial Services are urging the newly-confirmed director of the Consumer Financial Protection Bureau, Kathy Kraninger, to commit, in writing, to "resuming a consistent supervisory role over consumer protection laws, including the MLA [Military Lending Act], for the most robust and efficient protection of servicemembers and their families." In their letter, the lawmakers charge that, although the CFPB has the authority to enforce the MLA, during former director Mick Mulvaney’s tenure, the Bureau discontinued enforcement, "neglecting its responsibility under the law to protect servicemembers and their families."

Enacted in 2006, the MLA provides protections for active-duty servicemembers and their families, including interest rate limits. In 2013, Congress amended the MLA to give the Bureau, along with other federal agencies that oversee financial institutions, the authority to enforce the MLA.

According to the letter, since 2011, more than 109,000 complaints have been made to the CFPB by servicemembers, veterans, and their families about various financial services and products. And while the Bureau obtained roughly $130 million of relief through various enforcement actions, "unscrupulous actors continue to target servicemembers." In support of their contention, the lawmakers note that, from 2016 to 2017, there was a 47 percent increase in complaints filed by servicemembers, veterans, and their families.

"We believe servicemembers and their families deserve to have their rights under federal law fully upheld through strong supervision and enforcement by federal regulators, including the Consumer Bureau."

MainStory: TopStory CFPB OversightInvestigations SCRA

Back to Top

Banking and Finance Law Daily

Introducing Wolters Kluwer Banking and Finance Law Daily — a daily reporting service created by attorneys, for attorneys — providing same-day coverage of breaking news, court decisions, legislation, and regulatory activity.


A complete daily report of the news that affects your world

  • View full summaries of federal and state court decisions.
  • Access full text of legislative and regulatory developments.
  • Customize your daily email by topic and/or jurisdiction.
  • Search archives for stories of interest.

Not just news — the right news

  • Get expert analysis written by subject matter specialists—created by attorneys for attorneys.
  • Track law firms and organizations in the headlines with our new “Who’s in the News” feature.
  • Promote your firm with our new reprint policy.

24/7 access for a 24/7 world

  • Forward information with special copyright permissions, encouraging collaboration between counsel and colleagues.
  • Save time with mobile apps for your BlackBerry, iPhone, iPad, Android, or Kindle.
  • Access all links from any mobile device without being prompted for user name and password.