Consumer Financial Protection Bureau cuts hurt service members, veterans
Posted
Mike Litt
Submitted photo/Arizona PIRG Education Fund
Recent analysis by the Arizona PIRG Education Fund documents that complaints from service members, veterans and military families rose 165% from 2020 to 2024, indicating that the CFPB’s work to protect consumers is more critical than ever.”
For too many consumers, navigating the marketplace for financial services can feel like a nightmare — a minefield of rip-off artists, usurious lenders, unresponsive credit reporting agencies and unreasonably aggressive debt collectors.
Fortunately, the federal Consumer Financial Protection Bureau was created as a one-stop shop for consumers to turn to when they face problems in the marketplace for financial services, uniting functions from seven different agencies, none of which had been solely focused on protecting consumers.
Since its creation, the CFPB has returned more than $21 billion to consumers through enforcement actions and supervisory examinations. More than 205 million consumers have been eligible for this relief as a result of the CFPB’s work to stop illegal business practices. The CFPB’s public complaint database has published more than nine million complaints, giving consumers a voice and holding companies accountable.
Why service members and veterans need a strong CFPB
The CFPB recognizes that service members and veterans often face unique circumstances that make them targets for scams and inflated prices. Problems that may result from mistreatment in the financial marketplace can put service member jobs and military readiness at risk.
Although service members have special financial protections and benefits under the Military Lending Act and the Servicemembers Civil Relief Act, too often they don’t receive the benefits to which they are entitled. The CFPB’s Office of Servicemember Affairs conducts research and creates resources to educate and inform servicemembers about their legal rights.
The CFPB takes enforcement actions (lawsuits) on behalf of service members against bad actors in the financial marketplace; maintains a public database of complaints that shines a light on the financial issues servicemembers experience; provides information and support to help servicemembers navigate the financial marketplace and supervises companies to ensure compliance with federal consumer financial laws.
Unfortunately, recent analysis by the Arizona PIRG Education Fund documents that complaints from service members, veterans and military families rose 165% from 2020 to 2024, indicating that the CFPB’s work to protect consumers is more critical than ever.
Decision-makers must protect the CFPB
To fulfill its mission, the CFPB’s leadership should keep the agency’s critical work going strong — not shutter or hamstring the Bureau. In particular, CFPB’s leadership should reinstate delayed or prematurely terminated investigations and enforcement actions; resume financial relief payments to harmed service members, veterans and other consumers; resume full enforcement and supervisory activities; and maintain public access to a vibrant, transparent and comprehensive consumer complaint database — one that encourages consumers, competitors, academics, researchers and even the complained-about companies to identify ways to improve the financial marketplace.
The CFPB safeguards our nation’s uniformed men and women from unnecessary financial distress, holds companies accountable and gives servicemembers a voice and tools to thrive financially, enabling them to take control of their financial well-being and access the benefits they deserve. Decision-makers must protect the CFPB and ensure the agency can continue to protect both service members and civilian consumers.
