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T e CFPB was established in 2011 in response to the M THE


THE CFPB’S OSA TAKES ON UNETHICAL LENDERS AND RETURNS CASH TO SCAMMED SERVICE MEMBERS


By Darla J. Torres AFSA Magazine editor-in-chief


Federal agencies are often seen as lumbering entities in which requests from customers often get caught in a cycle of red tape and bureaucracy before spiraling into a black hole. T at image is part of what makes the Offi ce of Servicemember Aff airs (OSA) within the Consumer Financial Protection Bureau (CFPB) such a breath of fresh air. In its three years of existence, the CFPB has put real


cash—more than $1 million in compensation for individ- ual complaints—back into the wallets of servicemen and -women. T eir eff orts have also changed rules to smooth fi nancial roads for the military community while estab- lishing speed bumps and stop signs for busi- nesses that unethically prey on Airmen, Sol- diers, Sailors, Marines, Coast Guardsmen, mil- itary Veterans, and their families. Holly Petraeus, the


head of the OSA, describes its mission as three-fold:


• to help ensure military families receive the fi nancial education they need to make smart fi nancial decisions;


• to monitor complaints and questions from military families and ensure they are responded to; and


• to coordinate with federal and state agencies to improve consumer protection measures for military families.


economic meltdown in the U.S. According to Petraeus, the President and Congress asked at the time, “Who was watch- ing out for consumers when things went south?” T e answer, she says, was that “there were good laws in place, but the enforcement of those laws was spread out over seven diff erent agencies.” T us, the establishment of the CFPB consolidated the enforcement of those laws in one agency. Written into the statute that created the agency was a


mandate for an offi ce—the OSA—that specifi cally looks out for fi nancial issues concerning military members—inclusive of active duty, Guard, Reserve, and their families. Petraeus includes Veterans in this group as well, noting, “Anyone who has worn the uniform can come to us for help.” To get that help, consumers can submit a complaint by


calling the CFPB or fi lling out a complaint form online at consumerfi nance.gov. If a person is identifi ed as a military member, family member, or Veteran, the OSA also will see his or her complaint. Once that complaint is processed and vetted, the CFPB sends a letter to the off ending organization on behalf of the complainant, and normally that is enough to get resolu- tion, according to Petraeus. “In part because our com-


“There are those out there who know that military members have a guaranteed twice-a-month paycheck that can be garnished, and that the force is relatively young and perhaps less experienced at managing money.” — Holly Patraeus


plaint database is public, businesses normally respond within the required 15 days, and we’re able to resolve the issue,” she says. T e resolu- tion also is logged into the CFPB’s database. Beyond record-keeping, the database is used to identify trends, according to Petraeus, and to research companies or busi- nesses under investigation.


ROOT OF THE PROBLEM In the three years since its


creation, the CFPB has increased the number of complaint categories from just one—mortgages—to several: debt col- lectors, credit cards, checking and savings accounts, credit reporting bureaus, payday loans, credit repair, and digital currency. “Unfortunately, the military is a target,” says Petraeus.


“T ere are those out there who know that military mem- bers have a guaranteed twice-a-month paycheck that can be


AFSA Magazine • NOVEMBER/DECEMBER 2014 17


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