AGs Urge CFPB to Reconsider Military Lending Act Decision

by Sarah Green

In a response to a recent decision to stop examining lenders who provide loans to military service members, Colorado Attorney General Cynthia Coffman and 32 other attorneys general around the country are calling out the Consumer Financial Protection Bureau and its acting director, Mick Mulvaney, to leave current protective measures in place under the Military Lending Act. The act protects service members from predatory lenders who offer debt-mounting loans at extremely high interest rates. 

In the Oct. 23 letter to Mulvaney, attorneys general from 33 states, including Colorado, expressed their concern with the CFPB’s decision to stop ensuring lenders follow the MLA rules.

“The Consumer Financial Protection Bureau ensures that lenders are complying with the Military Lending Act as a part of its regular, statutorily mandated supervisory examinations,” Coffman said. “No longer ensuring this compliance could significantly harm the service members who live and work in Colorado and that would be contrary to the CFPB’s statutory mandate.”

To read this story and other complete articles featured in the November 5, 2018 print edition of Law Week Colorado, copies are available for purchase online.