This week, Congressman Andy Barr (KY-06) introduced legislation, the Financial Protection for Our Military Families Act, to give the Consumer Financial Protection Bureau (CFPB) supervisory authority over all financial firms that lend to our troops and their families protected under the Military Lending Act.
“Our nation’s military and their families should never be subject to inappropriate or usurious financial fees,” said Congressman Barr. “As the agency with jurisdiction over consumer financial protection, the CFPB should have statutory authority to assist the Department of Defense with the oversight of the Military Lending Act, which will ensure our troops and their families can access the credit they need without being subject to unscrupulous practices or usurious fees. Moreover, financial firms are familiar with the CFPB and are already accustomed to working with the CFPB on a number of other consumer protection issues, allowing for more timely guidance for the regulated community. After selflessly defending our nation, our troops and their families deserve reliable financial services.”
The Military Lending Act was enacted in 2006 and further amended in 2013 – both through the annual National Defense Authorization Acts. Currently, the CFPB has authority to enforce violations of the Military Lending Act but does not have explicit authority to supervise for Military Lending Act compliance. This legislation would give the CFPB this explicit authority.