WASHINGTON—In a letter with six additional members of the House Financial Services Committee, Rep. Warren Davidson (R-OH) is encouraging the Department of
Defense (DOD) to withdraw question No. 2 from its Military Lending Act (MLA) revised interpretive rule.
The seven members of the House Financial Services Committee, in a letter to the department, said it seems to restrict access to products such as guaranteed auto protection (GAP) insurance "that many service members and their families rely on to help them manage the financial risks associated with owning an automobile," NAFCU reported.
NAFCU and the Defense Credit Union Council have argued the same as the Representatives – that question No. 2 seems to prohibit access to GAP insurance for the MLA-covered borrower when they want to finance the insurance with the loan used to purchase the vehicle.
NAFCU noted that the trade association and the DCUC are also working to have the question removed due to the confusion it has created for credit unions and their third-party vendors.
Signers of the letter, in addition to Davidson, included: Rep. Scott Tipton (R-CO), Rep. Roger Williams (R-TX), Rep. Bill Posey (R-FL), Rep. Ted Budd (R-NC), Rep. Lee Zeldin (R-NY), and Rep. Alex Mooney (R-WV).