The final version of the National Defense Authorization Act for Fiscal Year 2022 (NDAA) (S. 1605) currently awaiting President Biden’s signature does not contain several proposed provisions that members of the consumer financial services industry had opposed.
Specifically, the NDAA does not contain provisions that would have:
- Expanded coverage of the Military Lending Act’s 36% “all-in” rate cap to all consumers
- Placed additional limits on the use of arbitration in contracts with servicemembers
- Imposed new requirements on the reporting of adverse information on servicemembers by consumer reporting agencies
The NDAA does contain a provision (Section 6207) that expands the coverage of the Servicemembers Civil Relief Act (SCRA) protections dealing with the termination of residential or motor vehicle leases and telephone service contracts. The provision amends the SCRA to make those protections applicable to members of the Foreign Service who are posted abroad at a Foreign Service post.