The Consumer Financial Protection Bureau last week endorsed the Defense Department’s proposed expansion of credit categories subject to the Military Lending Act.
“The products that have been marketed and extended to service members while the current Military Lending Act regulations have been in place underscore the limitations of those regulations in protecting service members and their families across the credit marketplace,” the CFPB said.
ABA and other groups recently urged DoD to exempt depository institutions from the rule. The proposed restrictions, ABA said, would constrict mainstream credit options for service members and their families and create technological and compliance hurdles that could force banks out of the military market.
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Read ABA's comment letter.