Credit union and banking groups appealed on Wednesday to a federal interagency regulatory panel for a six-month delay in enforcing new rules designed to protect service members from predatory lenders.
Last week officials with CUNA and the American Bankers Association said they were still confused by the rules, scheduled to take effect Oct. 3, even as the Department of Defense issued clarifications. On Tuesday CUNA asked DoD for a six-month delay, and on Wednesday CUNA joined with five other associations making a similar request to the Federal Financial Institutions Examination Council.
Mainstream banks and credit unions were not the target of Military Lending Act rules that were announced in July 2015. Instead, the rules were designed to stop payday lenders, title loan lenders and other that targeted cash-strapped service members and their families with loans with exorbitant interest rates that were easy to get and difficult to escape.
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