WASHINGTON (5/1/15)--A provision in the National Defense Authorization Act (NDAA) that would call for a study of military lending was removed from the legislation Thursday.
Rep. Tammy Duckworth (D-Ill.) proposed an amendment to strike the language involving the study, which had passed the House Armed Services Committee by a 32-30 vote earlier this week.
The committee provision, added to the NDAA by committee chair Rep. Mac Thornberry (R-Texas), called for a report on the effects of proposed Department of Defense changes to the Military Lending Act (MLA) on both military readiness and servicemember access to financial services. That DOD change would cap annual percentage rate of interests as well as install several consumer protections.
CUNA urged the DOD to exempt credit unions from this proposal, believing it would affect credit unions' ability to deliver affordable, high-quality financial products. CUNA also strongly opposed a provision that would change the process for determining whether a borrower is covered under the MLA protections.