Finance Reform Bill Allows Lenders to Continue to Prey on Military Personnel

Finance Reform Bill Allows Lenders to Continue to Prey on Military Personnel
Posted by Allen Cermak [1] on July 17 [2] 2010

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The financial reform bill moving through Congress excuses car dealers from the oversight of the planned Consumer Financial Protection Bureau. A recent article in The Washington Post [4] explains how this potential law shields auto dealers and enables them to continue their predatory lending practices to young servicemembers. According to Congress, auto dealers outrank our soldiers, sailors, airmen and Marines.  All Americans should be upset that Congress is opting to side with the powerful lobbying efforts of auto dealers rather than our men and women in uniform.  

Military personnel have long been prone to predatory lending schemes by auto dealers. Younger servicemembers are typically targeted by off-base auto dealers who take advantage of them by offering cars financed at exorbitant and unethical interest rates to the new troops.

Every servicemember knows this story: A young private reports to their first duty station, motivated and sitting on a small amount of savings from boot camp. This young war-fighter is immediately inundated by offers for easy credit and a fancy car. Soon the local predatory auto dealer locks these young men and women into a confusing contract with a mind-boggling interest rate, jeopardizing their credit history and financial future for years to come.

It’s time to ask your representatives in Congress who they side with: the powerful lobbying interests or the troops?

Allen served in Iraq with the 4th Infantry Division as a scout platoon leader from April 2003 to March 2004. He currently interns with IAVA's policy team in Washington, D.C.

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