Duckworth: Now Is The Time To Act To Protect Service Members From Predatory Lending

Press Release

Today, Congresswoman Tammy Duckworth (IL-08) will be introducing an amendment to the National Defense Authorization Act (NDAA) striking language that would delay protections for Service Members from predatory lending. In 2013, Duckworth was joined by 53 of her colleagues in a letter to the Department of Defense calling for increased protections for members of the military from high cost loans. Last year, in response DoD proposed a rule to extend Military Lending Act protections to all forms of credit targeting members of the military. The current version of the NDAA would unnecessarily delay the rule change for as long as a year.

"Unmanageable debt is difficult for any family struggling to balance their finances," said Duckworth. "In the military, the burden can affect security clearances and advancement. Unscrupulous debt collectors go after service members deployed overseas and who are unable to answer claims. Credit is destroyed and lives are disrupted. Under current law, Service Members are vulnerable to harmful loan practices that circumvent the Department of Defense's current regulations on the Military Lending Act. This process discriminates against those who work every day to defend our nation; they deserve the strongest protections our government can provide."

"I introduced this amendment because the language inserted into the National Defense Authorization Act would force the Department of Defense to waste resources undertaking redundant studies and postpone the implementation of valuable protections. As the Department and CFPB's own reports show, service members have not been fully protected since the Military Lending Act was passed, and further delay will put more service members and their families in harm's way. There can be little doubt that ensuring our service members are offered fair and affordable credit is a priority and of the utmost urgency. Now is the time to act."

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