The Department of Defense’s December guidance on the Military Lending Act has impacted several credit union services, and a recent CUNA CompBlog post examines its effect on indirect dealer lending programs.
CUNA met with Department of Defense officials and representatives from federal financial regulators, including the NCUA and CFPB, Wednesday to discuss clarifications relating to the Military Lending Act guidance.
The Department of Defense published CUNA-requested guidance on changes to the Military Lending Act Thursday. CUNA, which has strongly pushed for the guidance, is currently reviewing it to determine impact.
CUNA member credit unions can now access an interactive spreadsheet designed to help them determine which credit card fees are “reasonable and bona fide” under the Military Lending Act. Related regulations are effective Tuesday.
A bipartisan group of representatives wrote to the DoD Wednesday highlighting concerns shared by CUNA about unintended consequences of the Military Lending Act, that it could be impeding access to credit.
CUNA and DCUC met with DoD officials Wednesday to discuss the need for additional guidance relating to changes to the Military Lending Act that could have a stifling effect on access to credit for servicemembers.
While the DOD has affirmed the Military Lending Act’s effective date for credit card accounts of Oct. 3, CUNA is engaged with legislators to build support for efforts to exempt credit unions from the rule.
An opinion piece appearing this week in Stars and Stripes credits CUNA and other organizations for pushing for improvements to MLA regulations, saying the changes could make it harder for servicemembers to obtain financial services.