The Consumer Financial Protection Bureau (CFPB) is reportedly considering the suspension of suspend routine examinations of lenders suspected of running afoul of the Military Lending Act.
According to a New York Times
report that cited internal CFPB documents—the publication did not explain how it obtained this paperwork—CFPB Acting Director Mick Mulvaney reportedly argued that the examinations of lenders were a proactive measure created by the agency and were not specifically mandated in the Military Lending Act, which is designed to protect active military personnel, veterans and their families from unscrupulous transactions with financial services institutions. No CFPB policy change has been put into effect, and the New York Times noted the issue was raised in a “two-page draft of the change.”
The New York Times added that the CFPB
“will still bring individual cases against lenders who are found to charge in excess of the annual interest rate cap of 36 percent mandated under the law, and continue to supervise lenders under other statutes.” A spokesperson for Mulvaney said the agency was in the midst of a review of procedures to determine which represented overly aggressive enforcement.
To date, the CFPB has returned more than $130 million to service members, veterans and their families and handled more than 72,000 complaints related to this lending sector.