Release date:
10/23/2018
(RALEIGH) Attorney General Josh Stein today led a coalition of 33 attorneys general calling on the Consumer Financial Protection Bureau (CFPB) and Acting Director Mick Mulvaney to continue protecting military servicemembers against predatory lenders under the Military Lending Act (MLA). The attorneys general urge the CFPB to reconsider its reported decision to stop examining lenders to ensure they are complying with the MLA. Attorney General Stein is leading this coalition, along with Nebraska Attorney General Douglas Peterson.
“Our military servicemembers sacrifice so much on our nation’s behalf,” said Attorney General Josh Stein. “I, along with the 32 other attorneys general in this coalition, have a responsibility to stand up for them so their lives aren’t ruined by financial exploitation. I urge the CFPB to fulfill its legal obligation to examine lenders to ensure their compliance with the Military Lending Act.”
The MLA, enacted in 2006, protects military servicemembers and their families against exploitative lenders and loans so that servicemembers aren’t overburdened with debt. The CFPB has the authority to examine lenders’ compliance with the MLA to detect potential risks to consumers and ensure that military servicemembers aren’t being offered illegal loans. This is especially important for younger servicemembers who have less experience managing their own finances and may be more vulnerable to predatory loans.
Approximately 60 percent of military families report experiencing stress related to their financial condition. Servicemembers in financial distress may have their security clearance revoked and be compelled to leave the military, resulting in the loss of well-trained servicemembers and additional financial burdens for the military.
Attorney General Stein and Attorney General Peterson are joined in sending this letter by the Attorneys General of Alaska, California, Colorado, Connecticut, Delaware, District of Columbia, Hawaii, Illinois, Iowa, Kentucky, Maine, Maryland, Massachusetts, Minnesota, Mississippi, New Jersey, New Mexico, New York, North Dakota, Ohio, Oregon, Pennsylvania, Puerto Rico, Rhode Island, South Dakota, Tennessee, Vermont, Virgin Islands, Virginia, Washington, and Wyoming.
A copy of the letter can be found here.
Contact:
Laura Brewer (919) 716-6484
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