By Nick Gale, WLS-AM 890 News
(CHICAGO) — Attorney General Lisa Madigan Tuesday joined a coalition of 32 attorneys general in calling on the Consumer Financial Protection Bureau and Acting Director Mick Mulvaney to continue protecting military service members against predatory lenders under the Military Lending Act.
Madigan and the other attorneys general urged the CFPB to reconsider its reported decision to stop examining lenders to ensure they are complying with the MLA.
The MLA, enacted in 2006, protects military service members and their families against exploitative lenders and loans so that service members are not 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 are not being offered illegal loans. Madigan says this is especially important for younger service members who have less experience managing their own finances and may be more vulnerable to predatory loans.
“Military families make tremendous sacrifices for our country, and we must enforce the laws designed to protect them,” Madigan said. “The CFPB must support service members and their families by continuing to ensure lenders are complying with the Military Lending Act.”
In the letter, Madigan and the other attorneys general said that approximately 60 percent of military families report experiencing stress related to finances, underscoring the need for protections under the MLA. Service members in financial distress may have their security clearances revoked and be compelled to leave the military, resulting in the loss of well-trained service members.
Joining Madigan in sending the letter were attorneys general of Alaska, California, Colorado, Connecticut, Delaware, District of Columbia, Hawaii, Iowa, Kentucky, Maine, Maryland, Massachusetts, Minnesota, Mississippi, Nebraska, New Jersey, New Mexico, New York, North Carolina, North Dakota, Ohio, Oregon, Pennsylvania, Puerto Rico, Rhode Island, South Dakota, Tennessee, Vermont, Virgin Islands, Virginia, Washington, and Wyoming.
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