CFPB premise for resuming exams for servicemember financial protections under MLA in Federal Register Wednesday

An interpretive rule explaining the consumer financial protection agency’s authority to examine financial institutions for compliance with the Military Lending Act (MLA), which confers specific consumer financial protections for active-duty military servicemembers and their families, is slated to publish in the Federal Register Wednesday, when it also becomes effective.

The Consumer Financial Protection Bureau (CFPB), under former Director Kathleen Kraninger, in 2018 ceased conducting MLA-related examinations, asserting that it lacked authority from Congress to do so. Last Wednesday, the bureau, under Acting Director Dave Uejio, said the bureau’s “prior beliefs were unpersuasive.”

Reg lookup: Examinations for Risks to Active-Duty Servicemembers and Their Covered Dependents

RR: Bureau fires first shot in resuming exams under Military Lending Act; asserts that 2018 reasoning for discontinuing ‘not persuasive’ (June 16, 2021)