Congresswoman Susan Davis Votes to Expand Financial Protections for Servicemembers

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Washington, DC, May 1, 2015 | comments

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During consideration of National Defense Authorization Act (NDAA) in the House Armed Services Committee, Congresswoman Susan Davis voted to let the Department of Defense (DOD) move forward in expanding financial protections for our men and women in uniform. Language in the NDAA would have blocked the DOD from extending those protections. In supporting an amendment by her colleague Rep. Tammy Duckworth (D-IL), Davis also urged her colleagues to support the amendment.

“What this amendment does is to make sure we don’t delay any further what has already been a long and drawn out process,” said Davis, Ranking Member of the Military Personnel Subcommittee. “One of things we do for our servicemembers is not to allow them to fall victim to predatory lenders. We know that they are out there. A report by the Consumer Financial Protection Bureau detailed the numerous loopholes lenders use to violate the bipartisan Military Lending Act.”

With reports of lenders charging servicemembers as much as 400% in interest rates, Congress enacted the Military Lending Act in 2006, capping rates at 36% on certain loans. However, some unscrupulous lenders have found ways to get around those rules.

To close these loopholes, the DOD has proposed a rule expanding the protections of the Military Lending Act to all forms of credit targeting members of the military.

Original language in the NDAA would have prevented the DOD rule from moving forward. The Duckworth Amendment, which passed 32-30, stripped that language out of the bill.

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