In this third installment of the special series on servicemember protections, Chris Willis is joined by colleagues Taylor Gess and Jeremy Sairsingh to explore the non-pricing protections under the Military Lending Act (MLA) and the Servicemembers Civil Relief Act (SCRA).
In this second installment of the special series on servicemember protections, Chris Willis is joined again by colleagues Taylor Gess and Jeremy Sairsingh to explore how the Military Lending Act (MLA) and the Servicemembers Civil Relief Act (SCRA) impose pricing restrictions that are far more complex than a standard state usury cap, and why that complexity must be accounted for at the product design stage.
In this kickoff episode of a special series on servicemember protections for The Consumer Finance Podcast, Chris Willis is joined by colleagues Taylor Gess and Jeremy Sairsingh to unpack the fundamentals of the Military Lending Act (MLA) and the Servicemembers Civil Relief Act (SCRA) — two laws that remain top enforcement priorities for federal regulators. They explain how these laws are rooted in military readiness and national security, and why that history matters for how regulators, courts, and the Department of Justice view compliance in the consumer credit space today.
In this episode of The Consumer Finance Podcast, Chris Willis is joined by colleagues Jason Manning and Carter Nichols to explore the intricacies of the Servicemembers Civil Relief Act (SCRA). As the current administration emphasizes the protection of servicemembers, understanding the SCRA’s provisions is more crucial than ever. The discussion covers the array of legal protections offered to active duty military members, reservists, and National Guard members, including interest rate caps, eviction protections, and lease terminations. The episode also delves into the complexities of active duty status and the differences between the SCRA and the Military Lending Act. With a surge in litigation and regulatory scrutiny, this episode provides timely insights for financial institutions navigating compliance and litigation risks. Tune in to grasp the nuances of these critical statutes and their implications for the consumer finance industry.
Last week, the U.S. District Court for the Northern District of California denied Empower Finance’s motion to compel arbitration in a class action lawsuit concerning its earned wage access (EWA) product, Cash Advance. In Vickery v. Empower Finance, Inc., the court found that Empower’s Cash Advance product was “credit” under the Military Lending Act (MLA) making Empower’s arbitration agreement unenforceable under the MLA, which prohibits arbitration agreements for consumer credit extended to active-duty service members and their dependents.
On July 14, the Federal Trade Commission (FTC) secured a court order aimed at halting allegedly deceptive practices against seven companies and three individuals operating the “Accelerated Debt” program. The defendants allegedly contacted consumers through telemarketing calls or in response to calls resulting from their mail and online ads and made false claims about their ability to substantially reduce consumer debts and misleading consumers about fees. The FTC alleged these actions violated the FTC Act, the Telemarketing Sales Rule, the Impersonation Rule, the Fair Credit Reporting Act (FCRA), and § 521 of the Gramm-Leach-Bliley Act by making false statements to get consumers’ financial account numbers. The court’s order includes a temporary restraining order, asset freeze, and the appointment of a temporary receiver to oversee the defendants’ business operations.
On March 13, New York State introduced proposed legislation titled the Fostering Affordability and Integrity Through Reasonable Business Practices Act (FAIR Act). The proposed legislation seeks to broaden the scope of consumer protection from deceptive business practices currently available under existing law by amending § 349 of the General Business Law (GBL). If enacted, the FAIR Act would provide individuals, small businesses, and non-profit organizations with greater legal recourse at the state level and target a wider range of alleged harmful conduct, including “unfair” and “abusive” business practices.
This article was republished on insideARM on April 22, 2025.
Yesterday, the Consumer Financial Protection Bureau (CFPB or Bureau) released a memo to staff outlining its new supervision and enforcement priorities for 2025.
On January 29, the Consumer Financial Protection Bureau (CFPB or Bureau) released a report analyzing the auto lending market’s impact on servicemembers. This report indicates that servicemembers face heightened financial challenges in the auto lending market, including higher loan amounts, interest rates, and monthly payments. Despite these challenges, servicemembers were less likely to experience vehicle repossessions.
On January 27, a three-judge panel of the U.S. Court of Appeals for the Fourth Circuit issued a significant opinion holding that the Servicemembers Civil Relief Act (SCRA) does not prohibit the enforcement of arbitration agreements in credit card contracts under the Federal Arbitration Act (FAA).