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CFPB testifies on commitment to servicemembers

Federal Issues CFPB Consumer Finance MLA Servicemembers U.S. House

Federal Issues

On July 13, the CFPB testified before Subcommittee on National Security of the House Committee on Oversight and Reform regarding the Bureau’s efforts with respect to servicemembers. The testimony began by noting that the Bureau “is committed to our mission . . . to educate and empower servicemembers, monitor their complaints, and coordinate efforts across the government to protect servicemembers and their families in the financial marketplace.” The Bureau pointed out that it has received more than 4.2 million consumer complaints since June 30, including more than 286,000 complaints from servicemembers, veterans, and military family members. The testimony highlighted efforts by the Bureau to protect military members, such as: (i) issuing a consent order against a Nevada-based consumer lender for allegedly violating the Military Lending Act (MLA), the Electronic Fund Transfer Act (EFTA), and the CFPA when making installment loans (covered by InfoBytes here); (ii) filing a complaint in the U.S. District Court for the Northern District of California against a California-based online lender for allegedly made making more than 4,000 single-payment or installment loans to over 1,200 covered borrowers in violation of the MLA (covered by InfoBytes here); and (iii) filing a complaint against a Texas-based pawn lender and its wholly owned subsidiary for allegedly violating the MLA by charging active-duty servicemembers and their dependents more than the allowable 36 percent annual percentage rate on pawn loans (covered by InfoBytes here). The testimony, among other things, also discussed the Bureau’s collaborations with other agencies such as the FTC and the VA to protect servicemembers from scams and fraud.

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