On Monday U.S. Senator Chuck Schumer of New York called for renewed federal oversight of predatory lenders who target veterans.
He criticized the Consumer Financial Protection Bureau for its recent decision to stop proactively searching for fraudulent lending.
“The federal government in recent months has abandoned the field and said to the banks and other predatory lenders we’re not going to go after you when you go after our veterans. Shame, shame on the lenders for doing that.”
Federal law protects veterans and their spouses from lenders who use aggressive sales tactics or deceptive ads that promise low interest rates, but don’t mention high contract fees.
But with the changes, Schumer said the agency will only help if veterans complain.
Some local organizations, like VetsEDU, are trying to fill in the gap by offering workshops and counseling to veterans who want to buy a home.
