While millions of Americans are no strangers to questionable debt-collection practices, a new report from the Consumer Financial Protection Bureau shows that the men and women in the armed forces are twice as likely than their civilian counterparts to file a complaint when a collector crosses the line.
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Protecting Those Who Protect Us
Servicemembers Twice As Likely To Submit Complaints About Unsavory Debt Collection Practices
By 3.22.16
Auto Lender Must Pay $3.28M In Refunds, Penalties For Illegal Debt Collection Tactics Against Servicemembers
By 10.28.15
Four months after federal regulators filed a lawsuit against an Ohio-based auto loan company over allegations it violated consumer protection laws – including those protecting servicemembers – in order to collect debts, Security National Automotive Acceptance Company (SNAAC) will pay $3.28 million in refunds and fines to resolve the case. [More]
Servicemembers At Failing For-Profit Schools Not Protected By Veterans Affairs
By 8.18.15
When a for-profit college closes its doors, students are often left with hefty student loan tabs and little recourse. Some of those borrowers may be eligible for a discharge of their debts through the Dept. of Education, but others – like the thousands of veterans who used their GI Bill benefits to finance their education – are simply out of luck, often losing their chance to obtain a degree, thanks in part to failures within the Department of Veterans Affairs. [More]
Expansion Of Military Lending Act Closes Loopholes Exploited By Predatory Lenders
By 7.21.15
Nearly a decade after legislation was put in place to protect U.S. military personnel and their families from predatory financial products, the Military Lending Act received a much-needed update to close loopholes often exploited by shady lenders to skirt the rules and put the financial lives of servicemembers at risk. [More]
CFPB Sues Auto Lender For Aggressive Debt Collection Tactics Against Servicemembers
By 6.17.15
By now it should come as no surprise that lenders shelling out thousands of dollars to help consumers make purchases for things like houses and cars often use lies and threats in attempts to recoup those funds. And while those tactics might result in some payments, they will also likely draw the ire of federal regulators. [More]
Legislators Once Again Trying To Delay New Lending Protections For Military Personnel
By 5.13.15
The Department of Defense is trying to do something good for servicemembers by closing loopholes in the Military Lending Act that can leave military personnel vulnerable to predatory lenders. But these safeguards are now the target of a Congressman who has received substantial campaign contributions from payday lenders. [More]
House Panel Strikes Provision That Would Delay Added Military Lending Act Protections
By 4.30.15
Yesterday we reported that Congress would make a decision whether or not it would intervene to slow the Department of Defense’s work to create new rules aimed at closing loopholes in the Military Lending Act that often leave military personnel vulnerable to predatory financial operations. Thankfully, legislators saw the need for more protections regarding military lending and determined the rules could go into effect as planned. [More]
Congress May Delay Predatory Lending Protection For Military Personnel
By 4.29.15
The Military Lending Act prevents military personnel from being caught in revolving debt traps of triple-digit interest loans from predatory financing operations like payday and auto-title lenders, but there are loopholes that allow some lenders to get around the MLA’s 36% APR interest rate cap, resulting in the loss of millions of dollars to servicemembers each year and raising issues of national security. The Dept. of Defense is currently working toward new rules that would add protections for military personnel, but Congress may intervene to slow the DoD from making progress. [More]
CFPB Urges DoD To Close Loopholes That Cost Military Personnel Millions Of Dollars
By 12.30.14
Nearly three months ago the Obama administration and the Department of Defense announced a proposed overhaul of the Military Lending Act that would aim to close loopholes regularly exploited by predatory lenders in order to sink their hooks into military borrowers. Now, a new report from the Consumer Financial Protection Bureau highlights just how devastating – and costly – those loopholes can be for servicemembers. [More]
22 States Ask Defense Dept. To Do More To Protect Servicemembers From Predatory Lenders
By 12.22.14
When the Military Lending Act was introduced in 2007, it aimed to prevent predatory lenders from gouging military personnel with exorbitant interest rates and mountains of fees. While those protections have proven to be successful in many ways, lenders have since learned how to work around specific limits of the law. Now, attorneys general from 22 states are asking the Department of Defense to do more to shield servicemembers from unscrupulous lenders. [More]
CFPB: Retailer Allegedly Using Illegal Debt Collection Practices Against Servicemembers Must Refund $2.5M
By 12.18.14
The Consumer Financial Protection Bureau continues its fight against companies that continuously take advantage of members of the military, despite protections afforded to them under federal laws. Regulators’ latest victory? A settlement demanding over $2.5 million in consumer relief from three companies that allegedly used illegal tactics to pilfer money from servicemembers and their families. [More]
New DoD Protections Aim To Keep Shady Businesses From Taking Advantage of Military Members
By 11.21.14
Members of the military — particularly younger members from lower-income backgrounds — are too often the target of shady, predatory businesses looking to take advantage of their youth and inexperience with finances. The Military Lending Act offers some protections, but these operators find ways to get around the law. On Friday, the U.S. Dept. of Defense took steps to eliminate some of those exploitations by creating reforms to the current military discretionary allotment system. [More]
