AG to feds: Monitor predatory lending to service members
South Dakota’s attorney general joins 32 other state AGs in asking that the Trump administration continue to monitor lenders to ensure they are not preying on military people.
The consumer Financial Protection Bureau and acting director Mick Mulvaney decided to stop examining lenders to ensure they are complying with the Military Lending Act. This act protects military service members against predatory lenders.
“Protecting our service members from predatory lenders and other types of financial scams should be on the top of our priority list,” Attorney General Marty Jackley said. “The Military Lending Act, which already provides these types of protections needs to remain in place and the CFPB needs to do their part and just simply continue examining lender compliance.”
The MLA, enacted in 2006, protects military service members and their families against exploitative lenders and loans so that service members 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 service members aren’t being offered illegal loans.