Subject: Clips from the Senate Banking Committee Testimony
From: "Molly Magarik" <[email-masked]>
To: <[email-masked]>, "Hunter Biden" <[email-masked]>, "Valerie Biden Owens" <[email-masked]>, <[email-masked]>, <[email-masked]>, "Cuffe Owens" <[email-masked]>, "Missy Owens" <[email-masked]>, <[email-masked]>, "Casey Owens" <[email-masked]>, "Ted Kaufman" <[email-masked]>, "Eric Schwerin" <[email-masked]>, "Donilon Mike" <[email-masked]>, "Smith, Michele" <[email-masked]>, "Alexander Snyder-Mackler" <[email-masked]>
Date: Wed, 27 Jun 2012 08:26:24 -0400

Members of Military Targeted by Predatory Financial
Practices<http://www.google.com/url?sa=X&q=http://abcnews.go.com/Politics/servicemembers-targeted-predatory-financial-practices/story%3Fid%3D16655481&ct=ga&cad=CAcQARgAIAAoATAAOABAp_Wo_wRIAVAAWABiBWVuLVVT&cd=n-dh5LcemdI&usg=AFQjCNEmSLEgpJlSmPE83G_DDSwTRdjK6Q>
ABC News
Two military advocates with famous political ties – Holly Petraeus, the
wife of CIA Director Gen. David Petraeus, and Delaware Attorney General
Beau Biden, the son of Vice President Joe Biden – testified before Congress
Tuesday to discuss the progress made to protect 1.2 million servicemembers
from becoming the victims of scams and defending themselves from financial
risks.

Delaware AG testifies for servicemember financial
protections<http://www.google.com/url?sa=X&q=http://www.wdel.com/story.php%3Fid%3D43852&ct=ga&cad=CAcQARgAIAAoATAAOABAn6mq_wRIAVAAWABiBWVuLVVT&cd=fZ2T0v1xNNc&usg=AFQjCNEvpwHJXYDblHm1ADC_rE-faQr6Dg>
WDEL 1150AM
State Attorney General *Beau Biden* tells a congressional hearing that
military members and their families are a lot better off thanks to a
massive mortgage foreclosure settlement.

*
*

*American Banker*****

June 27, 2012****

SECTION: REGULATION & REFORM Vol. 177 No. 123****

LENGTH: 492 words****

Senate Dems Push to Expand Military Protections****

** **

WASHINGTON - Democratic senators pressed their case Tuesday for several
legislative measures that would provide greater financial protections to
members of the military.****

Service members ought to have stronger protections regarding payday loans,
private student loans and foreclosures, Democrats argued during a Senate
Banking Committee hearing on how to protect members of the military from
financial fraud.****

"It is important to remember that military consumer differ from other
consumers," Chairman Tim Johnson, D-S.D., said. "Many service members are
young, have debt, and have little financial education. The military
lifestyle requires frequent relocations, forcing spouses to find new
employment and families to sell their homes if they've chosen to live off
base."****

Sen. Jack Reed, D-R.I., pushed two pieces of legislation Tuesday.****

One of the measures, which is part of the annual defense authorization bill
currently under consideration by the Senate, would tighten an existing law
that bars lenders from charging members of the military more than 36%
interest on certain loans.****

Reed's legislation would direct the Pentagon to extend the existing rate
cap to loans structured as open-end revolving credit lines, rather than
just those that are structured as closed-end loans.****

"Well, open-ended lending is now going to be subject to the cap, too," Reed
said. "I don't think we're talking about losing good access to credit."****

Under questioning by Reed, Col. Paul Kantwill, director of legal policy at
the Pentagon's personnel and readiness office, said that the Defense
Department is considering making the proposed legislative change through
administrative action.****

"We will examine that very, very closely," Kantwill said.

Another bill sponsored by Reed would expand certain credit protections
available to members of the military under the Servicemembers Civil Relief
Act.****

For example, it would extend statutory protections from foreclosures for
active-duty service members to include their surviving spouses. It would
also expand the kinds of military orders that allow service members to
claim active-duty-related credit protection.****

Those ideas got support from Holly Petraeus, who testified as head of the
Consumer Financial Protection Bureau's Office of Servicemember Affairs.****

"I've heard more than once what a challenge it was when the financial
institution would only accept certain written orders, especially for
reservists, frankly, who go on and off active duty, very frequently and
sometimes very rapidly," Petraeus said.****

*Also testifying at the hearing was Delaware Attorney General Beau Biden.
He joined several Senate Democrats in calling for legislation to tighten an
existing law that prohibits for-profit colleges from obtaining more than
90% of their revenue from federal student-aid programs.*

*
*

Today, loans made under the Post-9/11 G.I. Bill do not count toward the 90%
cap, but that would change under a bill sponsored by Sen. Tom Carper, D-Del.

On Tue, Jun 26, 2012 at 8:19 AM, Molly Magarik <[email-masked]>wrote:

> DATE:                     Tuesday, June 26, 2012
>
> TIME:                      10:00 A.M.
>
> LOCATION:             Room SD-538, Dirksen Senate Office Building
>
> FULL COMMITTEE HEARING: “Empowering and Protecting Servicemembers,
> Veterans and their Families in the Consumer Financial Marketplace: A Status
> Update”
>
> WITNESS:
> The Honorable Joseph R. “Beau” Biden III
> Attorney General, State of Delaware
>
> Colonel Paul Kantwill
> Director of Legal Policy
> Office of the Undersecretary for Personnel and Readiness
> U.S. Department of Defense
>
> Ms. Hollister K. Petraeus
> Assistant Director for Servicemember Affairs
> Consumer Financial Protection Bureau
>
> Hearings are webcast live at: http://banking.senate.gov.
> Testimony and archived videos will be posted at:
> http://banking.senate.gov/public/index.cfm?FuseAction=Hearings.Home
>
>
>
>