Association of Military Banks of America

AMBAGram – New CFPB Military Lending Act (MLA) Interpretive Rule (IR)

AMBAGram #2021-009
17 June 2021

Yesterday, the Consumer Financial Protection Bureau (CFPB) issued an Interpretive Rule reversing its position on its authority to enforce the Military Lending Act.  In 2018, CFPB discontinued its MLA-related examination activities, based on its belief that it lacked the legal authority to engage in them.  Under the Biden Administration, and based on its practice prior to 2018, the agency has now decided that it does have legal authority.  Go to for more information.

The bottom line, as we see it, is that the CFPB’s resumption of MLA examination is a good thing.  In its recent 2020 Annual Report, the CFPB Office of Servicemember Affairs (OSA) cited numerous instances where military families were victims of predatory lending practices in violation of the MLA.  We believe that enhanced enforcement in this area will reduce these threats against military financial readiness and enhance the ability of responsible, regulated lenders to extend credit to military families.  Go to to review OSA’s 2020 Annual Report.

As always, please let us know if you have any questions.