Removing Barriers Blog

Dear Colleague Letter Seeks to Exempt Credit Unions from Dept of Defense MLA Rule
Posted August 14,2017 by ManojBhoi

Today, House Armed Services Committee Member Cook (R-CA) circulated a Dear Colleague letter that would request the Dept of Defense exempt credit unions from its Military Lending Act regulation, as amended in July 2015.

CUNA greatly appreciates Rep. Cook’s effort to achieve relief for credit unions regarding the onerous requirements of the rule.

The letter describes the unintended consequences the rule has had on credit unions, which have been “forced to cut back on, or eliminate, products that help find solutions for credit for servicemembers and their families that may have few or much worse other options.”

The letter embraces CUNA’s position over the past several years that the provisions of the rule adopted in July 2015 should not apply to credit unions, particularly because credit unions were not among the unscrupulous lenders for which the expanded provisions were needed.

The CUNA/League system will work with others in Congress to build support for the effort.