Bureau Issues Interpretive Rule on Resuming MLA Exams

Logo for the Consumer Financial Protection Bureau

The Consumer Financial Protection Bureau (CFPB) issued an interpretive rule this week explaining the basis for its authority to examine supervised financial institutions for risks to active duty servicemembers and their dependents (military borrowers) from conduct that violates the Military Lending Act (MLA).

Essentially, the bureau will resume MLA-related examination activities.

It is another example of new CFPB leadership reversing positions and policies from the prior presidential administration.

This position reverses the bureau’s previous position in 2018 that it did not have examination authority regarding the MLA.

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