Holly Petraeus has been appointed by the White House to be the head of the Office of Servicemember Affairs. She is the wife of Gen. David Petraeus, commander of U.S. forces in Afghanistan.
The Consumer Financial Protection Bureau serves to protect military members from auto loan abuses and other scams. This office, which will be up and running this summer, aims to help military families who are experiencing financial difficulties and also seeks to educate them on abusive lending techniques.
This office was created to respond to concerns raised by high-level Pentagon officials to do something about the cases of dealers' exploitation of young service members shopping near U.S. military bases.
The Pentagon sought to have dealers overseen by the new agency but it later lost out to the National Automobile Dealers Association in the legislative dispute.
Rather, it was determined that only financial institutions, including banks and credit unions that make consumer auto loans, will fall under its purview. Notably, dealers who assist in the financing will be exempt.
Instead, the dealers are regulated by state consumer agencies and the Federal Trade Commission. The purpose of the consumer agency is to oversee consumer financial products such as mortgages and credit cards after the recent economic downturn. One of the agency’s primary supporters is White House adviser Elizabeth Warren. [via autonews - sub. required]