All 49 Senate Democrats urged Consumer Financial Protection Bureau Director Mick Mulvaney to continue to protect military personnel from predatory lenders following reports that he may suspend examining firms for Military Lending Act compliance.
In a letter led by Sen. Jack Reed, D-R.I., the ranking member of the Senate Armed Services Committee and a member of the Senate Banking Committee, the senators said they were concerned that ending the exams could be a costly burden to service members.
The Military Lending Act caps the annual interest rate for an extension of consumer credit to a service member or his or her dependents at 36%.
The senators argued that the CFPB’s examinations and the agency’s Office of Servicemember Affairs serve as “the early warning system for MLA deficiencies so that they do not snowball into costly losses for servicemembers and avoidable litigation costs and penalties for lenders.”
Read more in American Banker.