Consumer Agency Will Fight to Defend Service Members' Pocketbooks

November 1, 2011
Los Angeles Times 
consumer financial protection bureau news

The federal government has introduced an initiative to prevent financiers from taking advantage of young, financially naive members of the military. To spearhead the effort, it enlisted Holly Petraeus, a longtime champion for military families who said that as an Army wife she was once preyed upon by a deceptive landlord. "I think a lot of people are surprised to think of the military as a target for unethical business practices or abuses," said Petraeus, head of the military affairs office at the new Consumer Financial Protection Bureau. "But the fact is that they have an absolutely guaranteed paycheck; it comes in twice a month, and they're not going to quit or be laid off." Those factors help make service members attractive targets for unscrupulous salespeople. So does their tendency to relocate often. "Military members move all the time, so they're constantly walking into new communities where they don't know the players," Petraeus points out. "They may go for the biggest billboard outside the front gate of the base, which may not be the one that will treat them the most fairly." Since being appointed this year, Petraeus has been visiting bases to learn how the military educates its enlisted persons and where it needs help. In September, her office began soliciting public input on financial products designed for service members and their families so her aides can craft better financial education and outreach initiatives. And although auto dealers managed to escape the purview of the CFPB, Petraeus says her office can at least educate them so that they do not agree to an unfavorable deal in the first place.
Web Link

Abstract News © Copyright 2008-2013 INFORMATION, INC.
Powered by Information, Inc.

Stay Updated

Join the fight against predatory lending. Enter your e-mail to sign up for breaking news, action alerts, and CRL's original research.

   Please leave this field empty

Help Us End Predatory Lending

Predatory lending destroys family wealth, and preys on our most vulnerable communities. You can help us end abusive lending practices by donating to CRL, or by sharing our work with others.