A group of Democratic Senators have introduced a bill, the “Military Consumer Protection Act” (S. 1565), that would amend the Consumer Financial Protection Act (CFPA) to include various sections of the Servicemembers Civil Relief Act (SCRA) within the list of laws defined by the CFPA as “enumerated consumer laws.”

The “enumerated consumer laws” are included within the CFPA’s definition of “Federal consumer financial laws.”  Section 1054 authorizes the CFPB to bring a civil action against a person who violates a “Federal consumer financial law.”  As a result, the bill would appear to give the CFPB direct SCRA enforcement authority.  While the CFPB currently examines supervised entities for SCRA compliance, it refers SCRA matters to the DOJ for enforcement.

The bill would appear to give the CFPB authority to enforce the following SCRA sections:

  • Section 107. Waiver of rights pursuant to written agreement (except with respect to bailments)
  • Section 108. Exercise of rights under the SCRA not to affect certain future financial transactions (except with respect to insurance)
  • Section 201. Protection of servicemembers against default judgments, which excludes child custody proceedings
  • Section 207. Maximum rate of interest on debts incurred before military service
  • Section 301. Evictions and distress
  • Section 302. Protection under installment contracts for purchase or lease
  • Section 303. Mortgages and trust deeds
  • Section 305. Termination of residential or motor vehicle leases
  • Section 305A. Termination of telephone service contracts