Military Lending

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On March 10, 2025, the CFPB informed the U.S. District Court for the Northern District of Texas that it will proceed with litigation against a short-term installment lender and its subsidiary for alleged violations of the Military Lending Act (MLA). The lawsuit alleges that the lender violated the MLA and a 2013 administrative consent order by issuing loans to military service members with interest rates exceeding the MLA’s 36% cap, included mandatory arbitration provisions in loan contracts, and failed to provide required disclosures. The CFPB further asserts that these practices continued despite a prior CFPB enforcement order against the lender’s predecessor.Continue Reading CFPB Moves Forward with Military Lending Act Enforcement Against Installment Lender 

On March 1, and despite recent policy shifts under the new administration, the CFPB sent a letter to the judge overseeing its lawsuit against a fintech lender in the United States District Court for the Southern District of New York, stating that it would proceed with its filed action. The lawsuit, originally filed in September 2022, alleges violations of the Military Lending Act’s (MLA) restrictions on extensions of credit to covered servicemembers. The complaint further alleges violations of the Consumer Financial Protection Act’s (CFPA) prohibitions on unfair, deceptive, or abusive acts or practices (UDAAPs). Continue Reading CFPB Continues Lawsuit Over Alleged Military Lending Act Violations

On September 24, the CFPB announced the release of its annual report on the most pressing financial concerns facing servicemembers. This edition highlights that servicemembers are encountering student debt-related difficulties such as struggling to get help from student loan servicers, and transcript withholding by colleges or universities as a means to collect on student debt.Continue Reading CFPB Report Highlights Student Loan Struggles Facing Servicemembers

On August 29, the CFPB issued a consent order against a non-bank direct mortgage lender for misrepresenting the cost of its cash-out refinance loans, which are guaranteed under the VA home loan program, to active-duty servicemembers and veterans.Continue Reading CFPB Penalizes VA Lender for Misrepresenting Cost of Cash-Out Refinance Loans

On February 21, a proposed class action lawsuit was filed against an auto finance company in the U.S. District Court for the Northern District of Georgia alleging various violations of the Military Lending Act (“MLA”). The named plaintiff is a “Covered Borrower” under the MLA, which includes active-duty military servicemembers and their dependents.Continue Reading Auto Finance Company Faces Class Action Lawsuit for Targeting Military Families

On February 23, the CFPB issued a consent order penalizing an auto finance company for allegedly violating the financial rights of military families and other consumers in providing auto title loans. The CFPB found that the company violated the Military Lending Act by extending prohibited title loans and charging interests rates nearly three times greater than the 36% annual interest rate cap. Pursuant to the consent order, the company is required to provide redress payments to consumer in the amount of $5.5 million, implement and maintain robust internal controls to prevent repeat offenses, and pay a $10 million fine.Continue Reading Recent CFPB Actions Focus on Protecting Military Families