The CFPB included a new report with its comment letter to the Department of Defense regarding proposed updates to the Military Lending Act. The report supported the CFPB's position that the tighter lending restrictions proposed by the DoD should be finalized as written.
The proposal included a broader definition of consumer credit that would prevent federal credit unions from making payday alternative loans permitted by an NCUA rule. The proposal would include any credit offered or extended to active-duty military members that has a finance charge or is payable under a written agreement in more than four installments. The proposed rules could be interpreted to include deposit advance products, more types of payday, auto title and installment loans, including open ended products like credit lines.
The CFPB said loopholes in the current Military Lending Act rules have allowed companies to skirt the rule's 36% rate cap and other military-specific credit protections.
Complete your profile to continue reading and get FREE access to CUTimes.com, part of your ALM digital membership.
Your access to unlimited CUTimes.com content isn’t changing.
Once you are an ALM digital member, you’ll receive:
- Critical CUTimes.com information including comprehensive product and service provider listings via the Marketplace Directory, CU Careers, resources from industry leaders, webcasts, and breaking news, analysis and more with our informative Newsletters.
- Exclusive discounts on ALM and CU Times events.
- Access to other award-winning ALM websites including Law.com and GlobeSt.com.
Already have an account? Sign In
© 2024 ALM Global, LLC, All Rights Reserved. Request academic re-use from www.copyright.com. All other uses, submit a request to [email protected]. For more information visit Asset & Logo Licensing.
