How to Report a Predatory Lender Targeting Military Members

If you've been charged interest rates above the 36% MAPR cap under the Military Lending Act, been sold a product that was misrepresented, or been subjected to other predatory practices, you have real legal remedies — and reporting creates a record that protects other service members.

Here's exactly where to report and what to expect.

Step 1: Document Everything

Before filing any complaint, gather:

• Loan documents (original agreement, any amendments)
• Statements showing interest charges, fees, and payments
• Communications with the lender (emails, texts, voicemails, in-person discussion notes with dates)
• Records showing your active duty status at the time of the transaction (if MLA protection applies)
• The lender's contact information and any business name/DBA information

Calculate the MAPR yourself. Under 32 CFR Part 232, the Military Annual Percentage Rate (MAPR) includes the interest rate plus all fees associated with the loan. The CFPB has a MAPR calculator in its MLA resources. If the MAPR exceeds 36%, document this calculation.

Where to Report: All Relevant Agencies

File complaints with multiple agencies — not just one. Each has different enforcement authority and the combination increases the chance of action.

1. Consumer Financial Protection Bureau (CFPB)

Website: consumerfinance.gov/complaint Phone: 1-855-411-2372

The CFPB is the primary federal consumer financial protection regulator. It has enforcement authority over the Military Lending Act for most non-bank lenders and supervisory authority for larger banks.

When submitting a CFPB complaint:

• Select the product type (e.g., "Payday loan, title loan, personal loan, or advance loan")
• Select the issue (e.g., "Charged fees or interest I didn't expect" or "Can't stop lender from debiting account")
• Include documentation supporting the MLA violation
• Specify that you are active duty military (or were at the time)

CFPB complaint outcome: The CFPB forwards your complaint to the company for response. Companies must respond within 15 days. CFPB also uses complaint data to identify patterns and prioritize enforcement actions. Individual complaints sometimes lead directly to resolution; aggregate complaints inform enforcement.

2. Federal Trade Commission (FTC)

Website: reportfraud.ftc.gov

The FTC enforces federal consumer protection laws and has authority over certain lenders and credit repair fraud. For unfair or deceptive practices (not specifically MLA violations), FTC is the appropriate agency.

FTC complaints also feed into the Consumer Sentinel Network, used by law enforcement agencies across the country to identify fraud patterns.

3. Your State Attorney General

Website: Find yours at naag.org/find-my-ag

State AGs enforce state consumer protection laws and usury statutes that may apply in addition to federal MLA protections. Some states have more aggressive enforcement against predatory lenders than federal agencies.

If the lender is licensed (or should be licensed) in your state, the AG's office may be able to pursue action directly. Some states have military protection units within their AG offices.

4. Department of Defense / Installation JAG

Your installation's legal assistance office (JAG) can:

• Review your loan documents for MLA violations
• Provide legal advice on your remedies
• In some cases, contact lenders on your behalf

JAG cannot represent you in civil litigation, but can advise you and make referrals. The installation commander also has authority to declare predatory businesses "off-limits" to service members — contact the provost marshal or command if a specific business is predatory and operating near the installation.

5. Office of the Comptroller of the Currency (if the lender is a national bank)

Website: helpwithmybank.gov

If the predatory lender is a nationally-chartered bank (with "National" in the name or "N.A." after it), the OCC has supervisory authority.

6. NCUA (for credit unions)

If the lender is a federally-chartered credit union, the NCUA handles regulatory complaints.

Your Legal Rights Under the MLA

If a lender violated the Military Lending Act, you have private rights of action:

• Void contract: Any credit contract that violates MLA is void and unenforceable against you from inception
• Damages: Up to $500 in statutory damages, plus actual damages, attorney's fees, and costs
• Criminal penalties for lenders: Knowing violations of MLA can result in criminal prosecution (up to 1 year imprisonment and fine)

For legal action, consult a consumer law attorney or contact your state's legal aid organization. Many consumer protection attorneys take MLA cases on contingency (you pay no upfront fees; the attorney recovers fees from the lender if successful).

If You're in a Predatory Loan Right Now

Stop and assess before stopping payment. Simply stopping payments creates default and credit damage even if the loan is illegal. The better path:

1. Contact your installation's financial readiness office immediately
2. Get legal advice from JAG
3. File complaints while the loan is active
4. Explore whether military aid society funds can help pay off the loan
5. If the MAPR clearly exceeds 36% (MLA violation), consult a consumer attorney about whether the contract is void

After You Report: What to Expect

Complaints to federal agencies don't always result in individual action — enforcement is often taken against the lender's practices generally, not your specific loan. However:

• CFPB may require the company to respond to your complaint and provide a resolution
• Patterns of complaints inform enforcement decisions
• Your documentation creates an official record

If the MLA violation is clear and the amount is significant, a private consumer law attorney can pursue your individual claim with better prospects for direct relief.

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Sources: Military Lending Act (32 CFR Part 232), CFPB complaint process (consumerfinance.gov/complaint), FTC fraud reporting (reportfraud.ftc.gov), MLA enforcement authority (10 U.S.C. § 987), consumer law resources