Final Rule Puts More Teeth Into Military Lending Act

By Terri Moon Cronk

DoD News, Defense Media Activity

WASHINGTON, July 21, 2015 – The Defense Department today closed loopholes to protect U.S. men and women in uniform from predatory lending practices, President Barack Obama said this morning at the 116th Veterans of Foreign Wars National Convention in Pittsburgh, Pennsylvania.

The heightened level of financial and consumer-rights protection against unscrupulous practices, called the final rule of the Military Lending Act, covers all forms of payday loans, vehicle title loans, refund anticipation loans, deposit advance loans, installment loans, unsecured open-end lines of credit and credit cards, DoD officials explained.

“We’re going to keep fighting to give our troops and veterans a chance to enjoy the American freedom you helped defend,” the president told the veterans.

“There’s already a lot to protect our troops and families against unscrupulous predatory lenders, but some of the worst abusers -- like payday lenders -- are exploiting loopholes to trap our troops in a vicious cycle of crushing debt,” Obama said.

“It is the right thing to do,” he said of the new rule.

"With this action, the department takes an important stand against companies that can prey on our men and women in uniform,” Deputy Defense Secretary Bob Work said in a news release after the president’s announcement.

“This new rule addresses a range of credit products that previously escaped the scope of the regulation, compromising the financial readiness of our troops. Today, with our regulatory and enforcement partners, we stand united in support of our service members and their families," he continued.

Final Rule Results From 3-Year Study

The revision began with a three-year study by the Defense and Treasury departments, Federal Trade Commission, and financial regulators such as the Federal Deposit Insurance Corp., Federal Reserve Board, Office of the Comptroller of the Currency, Consumer Financial Protection Bureau and the National Credit Union Administration, DoD officials said.

Congress passed the Military Lending Act in 2006 to provide specific protections for active-duty service members and their families in consumer credit transactions.

Among other protections, the law caps at 36 percent the interest rate on covered loans to active-duty service members, requires disclosures to alert service members of their rights, and prohibits creditors from requiring a service member to submit to arbitration in a dispute.

New Rule Adds Protection

The latest rule allows for industry compliance by Oct. 1, followed by a staggered implementation period, DoD officials said.

The rule will help protect all active-duty service members and their families from committing to loans with excessive fees and charges.

Service members still will have access to no-interest loans, grants, and scholarships from the four military relief societies, and not all credit products will be affected by the regulation -- notably residential mortgages and purchase-money loans to buy cars, for example, which are excluded from the MLA’s definition of consumer credit, officials said.

Fitzgerald's ADEX Improves Readiness During Talisman Sabre 2015

By Mass Communication Specialist 3rd Class Patrick Dionne, USS Fitzgerald Public Affairs

TIMOR SEA (NNS) -- The Arleigh Burke-class guided-missile destroyer USS Fitzgerald (DDG 62) participated in an air defense exercise (ADEX) July 16 during exercise Talisman Sabre 2015 (TS 15).

The exercise provided the ship the opportunity to test its MK45 5-inch lightweight gun and its Phalanx Close-in weapon system (CIWS) in a real time environment.

"Live fire events such as this serve to improve overall readiness by providing the gunnery team with a dynamic target and the opportunity to get trigger time," said Cmdr. Christopher England, commanding officer of Fitzgerald. "There is no substitute for live fire events and we take advantage of every opportunity."

The exercise, which consisted of Fitzgerald firing its CIWS and 5-inch gun at a simulated target, is part of TS 15, a biennial exercise that provides an invaluable opportunity for nearly 30,000 U.S. and Australian Defence Forces to conduct operations in a combined, joint and interagency environment.

"The exercise allowed us to test watch stander capabilities, team procedures, and test and deploy procedures and tactics in an integrated strike group environment," said Lt. John Volkle, the ships weapons officer. "Everything about it went well, we established communications early, all the watch standers did an excellent job and the equipment performed as designed."

The exercise kicked off with a Lear jet towing a drone on a 22,000-foot cable, which served as a target for the ships 5-inch gun.

"The 5-inch is a crucial piece of equipment because it uses high-explosive rounds that can be used to neutralize surface, land and air targets," said Gunner's Mate 2nd Class Frederick Alayon, leading petty officer of combat gunnery division. "My group of Sailors got together to successfully engage the target and in order for this to happen it took a lot of attention to detail and precision. They did a wonderful job and I am very proud of them."

Sailors had the opportunity to fire the gun locally, providing valuable training time and to learn and operate the advanced and powerful system.

"Being able to fire the 5-inch was exhilarating and I was so happy to get the chance to do it," said Gunner's Mate 3rd Class Megan Smith. "I love what I do and I never thought I would have the opportunity to do something as exciting as this before the Navy."

Following the firing of the 5-inch, the jet made another pass over Fitzgerald towing a drone connected by a 13,000-foot cable to test the ships CIWS.

"[CIWS] has the ability to track and engage incoming targets and during the exercise it performed flawlessly," said Chief Fire Controlman Travius Caldwell. Any time we get the opportunity to test our communications and equipment in a combat systems scenario is priceless."

The CIWS is a point-defense weapon used for detecting and destroying short-range missiles and aircraft using both air and surface capabilities.

"The exercise was a great experience, we got to shoot about 400 rounds and the gear performed well," said Chad Schmidt, the mount captain for the CIWS. "The fact that it was able to aim and fire at such a small target is incredible. This gave us life-like training so that it becomes second nature to us if we need to use it in a real-life scenario."

Fitzgerald is on patrol in the U.S. 7th Fleet area of responsibility supporting security and stability in the Indo-Asia-Pacific region.

USS Mustin Joins Forces with New Zealand During Talisman Sabre

By Mass Communication Specialist 3rd Class David Flewellyn, USS Mustin Public Affairs

TIMOR SEA (NNS) -- The Arleigh Burke-class guided-missile destroyer USS Mustin (DDG 89) participated in a surface-action-group versus surface-action-group (SAG vs SAG) exercise with the Royal New Zealand Navy Anzac-class Frigate HMNZS Te Kaha (F 77) during exercise Talisman Sabre 2015 (TS 15), July 12-17.

The purpose of a SAG vs SAG exercise is to practice how surface combatants would work together to engage potential enemy surface combatants. During the exercise Mustin and Te Kaha worked together against the Nimitz-class aircraft carrier USS George Washington (CVN 73) and the Arleigh Burke-class guided-missile destroyer USS Fitzgerald (DDG 62).

"This exercise gives us a valuable opportunity to integrate with partner nations," said Lt. Jonathon Murray, Mustin's operations officer. "It provides us with the chance to strengthen interoperability, build relationships, and better prepares all involved to respond to potential situations in the region."

Integrating two different nation's navies can be challenging, however, especially during a complicated exercise like SAG vs SAG.

"Although we have a lot of the same equipment, doctrine and procedures, there are many differences in the way we think, communicate and therefore do business," said Lt. Cmdr. Alexandra Haughey, Te Kaha's operations officer. "We all want the same outcome so these challenges are overcome by being flexible and adaptable in the short term, and a willingness to learn from experience in the long term."

The SAG vs SAG was conducted as part of TS 15, a biennial exercise that provides an opportunity for nearly 30,000 U.S. and Australian Defence Forces to conduct operations in a combined, joint, and interagency environment that will increase both countries' ability to plan and execute a full range of operations from combat missions to humanitarian assistance efforts.

"I coordinated with fixed and rotary wing aircraft to properly identify track and engage simulated combatant targets," said Operations Specialist 1st Class Matthew Choi. "It was a bit challenging because we had to adjust our procedures to successfully integrate with our partner nations."

The interoperability between the partner nations was highlighted during a real world-world emergency, when two members of Te Kaha's crew required medical evacuations to George Washington.

"In both cases, at very short notice, the patients were transferred to George Washington by helicopter," said Haughey. "Te Kaha's helicopter transported the first patient...Mustin assisted with the helicopter transfer in the second. The outcome was that the personnel received the required medical attention, are now safe, and Te Kaha was able to continue with our mission in support of exercise objectives."

"Exercises like these build relationships, capabilities, understanding and the confidence that if required, these partnerships would be able to work together to respond to any stability or security issues in the region," said Haughey.

Te Kaha is homeported in Auckland, New Zealand, and is underway to participate in TS 15.

Mustin is on patrol in the U.S. 7th Fleet area of responsibility in support of security and stability in the Indo-Asia-Pacific region.