Auto Lending to Servicemembers
There is little literature regarding the challenges servicemembers face in the auto lending market and these experiences can have implications for servicemembers economic well-being and financial stability. In particular, debt may affect whether servicemembers receive and maintain a national security clearance. In addition to possible loss of their security clearance, servicemembers who fail to pay their debts also face other unique consequences such as military disciplinary action, delayed career progression, and termination from employment. In this report, we analyzed loan-level information from six lenders and found that servicemembers experience increased financial risks at many points in auto lending compared to non-servicemembers.
Full report
Related materials
Negative Equity Findings from the Auto Finance Data Pilot
Servicemembers continue to face major financial challenges
The Servicemembers Civil Relief Act (SCRA)
Ask CFPB: What are my rights under the Military Lending Act?
Resources for practitioners: What is the Military Lending Act and what are my rights?