Military Loan Oversight Fight Seen As Way To Weaken Protections

Consumer and servicemember advocates fear that a CFPB request for legislation to supervise payday and other lenders for Military Lending Act compliance could be a Trojan horse to weaken protections.

Consumer Financial Protection Bureau Director Kathleen Kraninger and Democratic lawmakers have been at odds over the bureau’s August decision to halt supervision for MLA compliance. Kraninger and her predecessor, Mick Mulvaney, say the CFPB is not authorized to do so, while Democrats and other groups – including the CFPB’s own legal counsel – say that the bureau has the power under current law.

Kraninger proposed what appearsto be a simple ...