Trump to Throw Vulnerable Troops to the Loan Sharks
August 13, 2018
Trump’s White House is planning to absolve the Consumer Financial Protection Bureau of their responsibility to conduct routine examinations of lenders who might be violating the Military Lending Act, and is proposing changes that could leave servicemembers more vulnerable to predatory lending.
By putting the lending industry ahead of our troops, it’s obvious that this president views the troops under his command more as props for photo opportunities rather than actual people. When it’s time to look out for the men and women responsible for protecting our nation, the president couldn’t care any less. Take a look:
The commander in chief is purposely making it harder for the the Military Lending Act to protect servicemembers and their families from deceitful lending practices.
New York Times: “Instead of conducting examinations that might find similar patterns, the bureau will now rely solely on complaints funneled through its website, hotlines, the military and people who believe they have been victims of abuse.”
NPR: “Under Mulvaney, the bureau is planning to halt regular monitoring of payday lenders and other firms to see whether they are violating the act and cheating military personnel.”
The Trump administration is also proposing changes that would give auto dealers and banks more power to rip off vulnerable servicemembers who are looking to purchase vehicles.
NPR: “The rules to protect service members effectively block auto dealers from tacking on an extra product — such as overpriced gap insurance — and rolling it into their car loans. The industry has been lobbying to change that, and the White House appears to be sympathetic. The administration just sent the latest version of a proposal to the Defense Department, and documents show that it would give car dealers what they want. Peterson says the revised rules could also allow dealers to roll in all kinds of other add-on products.”
The vast majority of our armed forces consists of young enlisted troops, who are targeted by malicious businesses and lenders. These are the men and women who will be swimming with loan sharks, thanks to Trump.
New York Times: “Many service members enter the military in their late teens or early 20s with little credit history, and are often targeted by auto loan financiers, credit card companies and retail stores that hide high financing costs behind low down payments and short-term teaser rates.”
TIME: “Debt in the military is a big deal. Service members with too much debt are at risk of having their security clearances revoked, which can result in reclassification, being overlooked for promotions, and even involuntary separation of services. From 2010 to 2012, 12% of active duty and activated reserve and guard personnel declared bankruptcy.”
During the Obama era, the CFPB returned more than $130 million to servicemembers, veterans, and their families who were harmed by illegal practices.
New York Times: “Since its creation under the Obama administration in 2011, the consumer agency has returned more than $130 million to service members, veterans and their families and handled more than 72,000 complaints per year, according to the agency.”