Democratic lawmakers, led by Sen. Tammy Duckworth, are urging the new acting head of the Consumer Financial Protection Bureau (CFPB) to restart operations to protect service members and veterans from financial crimes. They argue that shuttering the CFPB leaves this vulnerable population open to scams and fraud. Young service members, in particular, are targeted by predatory actors, such as payday lenders, due to their steady wages that can be garnished. The CFPB plays a crucial role in enforcing laws like the Military Lending Act to prevent such practices.
Since its establishment in 2011, the CFPB has taken action in cases involving harm to service members, resulting in $183 million in compensation to victims. The bureau also participates in task forces aimed at combating fraud against veterans and service members. Identity theft or bankruptcy resulting from financial scams can have severe consequences, such as loss of security clearance or the end of a military career.
Recent directives by Office of Management and Budget Director Russell Vought have halted CFPB operations, including supervising and examining activities, investigations, and enforcement actions. The action has been criticized by lawmakers as reckless and a direct threat to national security. A judge has ruled that Vought cannot terminate employees or reduce funding without cause, temporarily restraining his actions.
The lawmakers are asking Vought to reconsider his decision and resume the CFPB’s important work in protecting service members and veterans from financial exploitation. They warn that stopping these protections will only embolden predatory actors targeting the military community.
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