News & Analysis as of

Military Service Members Servicemembers Civil Relief Act (SCRA)

Troutman Pepper Locke

CFPB Releases Report Highlighting Auto Lending Challenges for Servicemembers

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On January 29, the Consumer Financial Protection Bureau (CFPB or Bureau) released a report analyzing the auto lending market’s impact on servicemembers. ...more

Hudson Cook, LLP

CFPB Bites of the Month - 2024 Annual Review - Nondiscrimination and Military Protection Law

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In this article, we share a timeline of our monthly "bites" for 2024 applicable to consumers protected by nondiscrimination and military protection laws. 2025 will likely bring more of the same, particularly in the area of...more

Ballard Spahr LLP

DOJ and CFPB Remind Institutions of Rate Protections for Servicemembers

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The Servicemember Civil Relief Act limits the amount of interest that may be charged on certain financial obligations that were incurred before military service began to no more than 6% percent per year, including most fees...more

Ballard Spahr LLP

CFPB: Number of servicemember complaints increased in 2023

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The Consumer Financial Protection Bureau’s (“CFPB”) Office of Servicemember Affairs Annual Report was released on September 24, 2024, highlighting areas of concern regarding student lending and noting that the number of...more

Orrick, Herrington & Sutcliffe LLP

Class proposes $64M settlement to resolve SCRA, MLA suit

On August 2, a proposed class of former and current servicemembers filed a memorandum in the U.S. District Court for the Eastern District of North Carolina proposing an unopposed settlement agreement between the class and the...more

Orrick, Herrington & Sutcliffe LLP

CFPB says SCRA-related complaints are increasing

On May 23, the CFPB published a blog post reporting that complaints from servicemembers, veterans, and their families significantly increased, with the total number of complaints surpassing 400,000 since the CFPB began...more

Ballard Spahr LLP

CFPB continues to look to creditors to help servicemembers take advantage of SCRA benefits

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On January 12, 2023, the Consumer Financial Protection Bureau (“CFPB”) issued a report highlighting an increase in reported incidents of identity theft by servicemembers. The report, titled “Servicemember reports about...more

Morgan Lewis

Latest Developments in Automotive Finance and Consumer Protection

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Federal agencies such as the Consumer Financial Protection Bureau (CFPB) and Federal Trade Commission (FTC) have increased their scrutiny of auto loan servicing activities, particularly regarding auto dealers who engage in...more

Orrick, Herrington & Sutcliffe LLP

Property manager settles with DOJ on SCRA violations

On June 13, the DOJ announced a settlement with a property management company resolving allegations that it charged nine servicemembers early termination fees after receiving military orders to relocate, in violation of the...more

Ballard Spahr LLP

DOJ announces consent order with property management company to resolve alleged SCRA early lease termination violations

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On June 13, 2023, the Department of Justice (“DOJ”) announced that it had settled an action against a multi-family residential property management company for alleged violations of the Servicemembers Civil Relief Act (“SCRA”)...more

Hudson Cook, LLP

CFPB Issues SCRA Paper Identifying Underused Benefits

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A couple of months ago, the Consumer Financial Protection Bureau issued a research paper it said revealed that many active duty servicemembers who were entitled to interest rate reductions under the federal Servicemembers...more

Ballard Spahr LLP

DOJ sues towing company over SCRA default judgment violations

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On March 3, 2023, the U.S. Department of Justice (DOJ) filed a complaint against a towing company located near a Marine base alleging violations of the Servicemembers Civil Relief Act’s (SCRA) prohibition against default...more

Orrick, Herrington & Sutcliffe LLP

DOJ initiates SCRA action over auto auctions and dispositions

On March 3, the DOJ filed a complaint in the U.S. District Court for the Eastern District of North Carolina against a North Carolina-based towing company for allegedly auctioning off, selling, or disposing of vehicles owned...more

Ballard Spahr LLP

DOJ alleges SCRA violations by City of El Paso for auctioning servicemembers’ vehicles without court orders

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On February 2, 2023, the U.S. Department of Justice (“DOJ”) filed a complaint against the City of El Paso, Texas (the “City”) and several co-defendants alleging violations of the Servicemembers Civil Relief Act (“SCRA”) for...more

Ballard Spahr LLP

New CFPB Report Proactively Encourages Creditors To Apply SCRA Interest Rate Benefits

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On December 7, 2022, the CFPB issued a report recommending that creditors proactively provide Servicemember Civil Relief Act (SCRA) interest rate benefits to eligible customers, bypassing the statute’s requirements of a...more

Ballard Spahr LLP

New CFPB report encourages creditors to proactively apply SCRA interest rate benefits

Ballard Spahr LLP on

On December 7, 2022, the CFPB issued a report recommending that creditors proactively provide Servicemember Civil Relief Act (“SCRA”) interest rate benefits to eligible customers, bypassing the statute’s requirements of a...more

Goodwin

Federal Reserve Invites Public Comment on Proposed Principles for Large Banking Organizations to Manage Climate-Related Financial...

Goodwin on

Regulatory Developments - Federal Reserve Invites Public Comment on Proposed Principles for Large Banking Organizations to Manage Climate-Related Financial Risks - On December 2, the Federal Reserve announced that it...more

Troutman Pepper Locke

CFPB Report Finds Only Small Fractions of Activated Guard and Reserve Servicemembers Receive SCRA Interest Rate Reductions

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On December 7, the Consumer Financial Protection Bureau (CFPB) released a report entitled Protecting Those Who Protect Us. The report sought to quantify, for the first time, the use of the Servicemembers Civil Relief Act...more

Troutman Pepper Locke

California Legislation Strengthens Consumer Protections for Servicemembers

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On September 27, California Governor Gavin Newsom signed Senate Bill 1311, the Military and Veteran Consumer Protection Act of 2022 (the Act), into law. The Act takes direct aim at, among other things, the Military Lending...more

Ballard Spahr LLP

DOJ Settles SCRA Interest Rate Action Against Auto Finance Company

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On September 28, 2022, the Department of Justice (”DOJ”) announced a settlement with Westlake Financial Services (“Westlake”), a Los Angeles-based indirect auto finance company specializing in subprime and near-subprime...more

Troutman Pepper Locke

CFPB and DOJ Remind Auto Finance Companies of SCRA Protections for Servicemembers

Troutman Pepper Locke on

On July 29, the Consumer Financial Protection Bureau (CFPB) and Department of Justice (DOJ) issued a joint letter to auto finance companies, reminding them of the protections the Servicemembers Civil Relief Act (SCRA) affords...more

Nelson Mullins Riley & Scarborough LLP

DOJ, CFPB Warn Auto Finance Companies about Servicemember Protections

The U.S. Department of Justice (“DOJ”) and the Consumer Finance Protection Bureau (“CFPB”) issued a joint letter reminding the auto finance industry to enforce certain interest rate restrictions and other consumer protection...more

Cadwalader, Wickersham & Taft LLP

CFPB and DOJ Send Clear Message Regarding Servicemembers to the Auto Industry 

Following the Consumer Financial Protection Bureau’s supervisory observations that the auto finance industry seemed to be struggling with providing adequate consumer protections to servicemembers, the CFPB has joined with the...more

Troutman Pepper Locke

DOJ Settles Servicemembers Civil Relief Act Complaint In Latest “Vigorous” Enforcement Action

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This week, the Department of Justice (DOJ) resolved Servicemembers Civil Relief Act (SCRA) claims against two affiliated Virginia landlords for allegedly obtaining unlawful court judgments against military tenants. To settle...more

Cozen O'Connor

Washington AG Ferguson Fines Towing Company For Selling Service Members’ Vehicles

Cozen O'Connor on

Washington AG Bob Ferguson reached a settlement with automobile towing company Chuck’s Towing and Recovery to resolve allegations that the company violated the Washington Consumer Protection Act and the federal...more

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