The NCUA’s latest installment in its Consumer Protection Update series outlines current consumer protections for military members under federal law and military outreach programs available for credit unions.
“Our service members, veterans and their families have made sacrifices for their country, and yet unscrupulous lenders lure them into a cycle of financial chaos,” NCUA Board Chairman Debbie Matz said in a statement.
“The latest Consumer Protection Update reaffirms NCUA’s commitment to ensuring that our nation’s service members are educated about their rights and won’t have to worry about their finances while defending our nation,” Matz said.
The Servicemembers Civil Relief Act and the Military Lending Act grant specific consumer protections to active duty military, including capping rates and fees associated with payday loans, auto title loans and tax refund anticipation loans at an annual rate of 36%.
In the video, Tonya Sweat, the NCUA’s director of consumer compliance policy and outreach, encourages credit unions to participate in Military Saves Week and Military Consumer Protection Day.
“Credit unions provide low-cost financial products and services to the military and defense communities worldwide. I encourage all credit unions to share this new video with their members and make sure that those who protect our country are themselves protected from usurious loans and predatory lenders,” Matz said.