ARLINGTON—NAFCU is urging the Department of Defense to delay the effective date of its Military Lending Act rule and provide additional guidance on it.
In a letter Friday to Deputy Assistant Secretary of Defense for Military Education Diana Banks, NAFCU Executive Vice President of Government Affairs and General Counsel Carrie Hunt, said, “NAFCU and our members have voiced concerns regarding unclear regulatory language on multiple occasions and, given the imminent compliance deadline of October 3, 2016, we believe this uncertainty must be immediately remedied through a formal statement from the Department or an interim final rule clarifying the interpretative guidance. Further, until these lingering questions are resolved, NAFCU requests that the rule’s effective date be delayed.”
Additionally, Hunt noted, “While NAFCU and our members continue to support the objectives of the MLA, the interpretive guidance issued by the Department fell far short of addressing the extensive list of ambiguities laced within the language of the rule. In fact, while credit unions appreciated the clarification that the MLA rule neither prohibits credit unions from exercising statutory lien rights nor prohibits share secured loans, the interpretive guidance raised some additional questions and concerns."
Hunt also requested a meeting to further discuss the concerns regarding the MLA rule and the DoD's interpretive guidance.