Armed Forces News

Service members and their families could stand to lose protections from predatory lenders, under the Trump administration’s proposed changes to the laws and regulations that government such activity. National Public Radio (NPR) reported Aug. 13 that the White house is moving forward with two plans – one affecting the way service members buy cars, and the other rolling back the regulations stipulated in the Military Lending Act. The NPR article cited an expert’s opinion that the changes would allow unscrupulous car dealers and lenders to resume practices that prey upon military consumers.
Car dealers could again press customers to purchase so-called gap insurance – which covers vehicles the moment they are driven off of car lots – at prices much higher than insurance companies would charge. Typically, the rip-off occurs when dealers get customers to accept the insurance and then roll it into their car loans.
The Military Lending Act change would end the Consumer Financial Protection Bureau’s practice of monitoring payday lenders, NPR reported.
Both proposed revisions are now under review.