Attorney General Coffman Urges Federal Government to Protect Military Servicemembers from Financial Exploitation
DENVER—Attorney General Cynthia H. Coffman today joined a coalition of 32 attorneys general calling on the Consumer Financial Protection Bureau (CFPB) and Acting Director Mick Mulvaney to continue protecting military servicemembers against predatory lenders under the Military Lending Act (MLA). The attorneys general urge the CFPB to reconsider its reported decision to stop examining lenders to ensure they are complying with the MLA.
“Servicemembers and veterans have made invaluable sacrifices for our country, and we must work with our federal partners to enforce laws designed to protect them and their families from financial harm,” said Attorney General Coffman. “The CFPB must do its job by ensuring businesses who interact with the military community do so honestly and in full compliance of the Military Lending Act.”
The MLA, enacted in 2006, protects military servicemembers and their families against exploitative lenders and loans so that servicemembers aren’t 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 servicemembers aren’t being offered illegal loans. This is especially important for younger servicemembers who have less experience managing their own finances and may be more vulnerable to predatory loans.
Approximately 60 percent of military families report experiencing stress related to their financial condition. Servicemembers in financial distress may have their security clearance revoked and be compelled to leave the military, resulting in the loss of well-trained servicemembers and additional financial burdens for the military.
A copy of the letter is available on the right side of this web page.
For more consumer protection information about scams and fraud targeting military families, please visit the Attorney General’s Office’s Consumer Protection website at https://stopfraudcolorado.gov/military.html