Today??????s Treasury Event on Abusive Lending Practices and the Military

Earlier today, Treasury Secretary Timothy Geithner hosted a roundtable to hear from military advocacy groups and Department of Defense personnel about abusive lending issues facing service members and their families. The roundtable appeared to be the latest of recent efforts by consumer advocates and others to highlight alleged auto financing abuses. By stressing objectionable financing practices, these groups hope to demonstrate the need for inclusion of auto finance companies and dealers within the scope and authority of the proposed Consumer Financial Protection Bureau (CFPB).

In addition to Secretary Geithner, participants included David Julian, Director, Office of Personal Finance, Department of Defense and Col. Marcus Beauregard (ret), Director, Financial Readiness Campaign, Department of Defense. Also present were leaders from the Navy-Marine Corps Relief Society, the National Military Family Association, the Financial Industry Regulatory Authority, Mission Serve, Military Saves, the Consumer Federation of America, the Credit Union National Association, Martin Attorney at Law, the National Military Family Association, the Council of BBB Military Line, the American Legion and the Armed Forces Services Corporation.

The remarks given by Treasury and DOD officials, which can be read here, contained no auto specific mentions. However, participants received a printed handout that stated, 'Military Families Deserve a Consumer Agency that Will Crack Down on Abusive Auto Lending Practices.' The handout also references DOD Undersecretary Stanley's recent letter to Treasury's Michael Barr regarding abusive auto financing practices directed toward the military. Read the complete handout here.

AFSA and NADA issued a joint response to Undersecretary Stanley's letter asking for a meeting to discuss the alleged abuses but, to date, we have not received a reply.
Among the media attending today's roundtable was Dow Jones, whose article can be read here.