Senator Elizabeth Warren (D-MA) expanded her inquiry into the auto industry on March 13, sending five new letters to major lenders requesting information and data on lending practices involving servicemembers.
The latest probe follows the Senator’s February 5 inquiry into repossession practices, which included a letter to NIADA and several of its member dealerships, among other groups.
In the new letters, Warren raises concerns that some of the nation’s largest auto lenders may be charging servicemembers higher interest rates on auto loans compared to civilian borrowers. The inquiry also draws a connection to the reduced supervisory activity at the Consumer Financial Protection Bureau (CFPB) since 2025, suggesting that diminished oversight could be contributing to disparities in lending practices affecting military personnel.
Among other requests, the senator is seeking detailed data from lenders on pricing and loan terms offered to servicemembers versus non-servicemembers. The letters ask companies to provide information that could reveal differences in interest rates, loan structures and underwriting practices between the two groups.
The inquiry signals continued scrutiny of the auto finance market, particularly relating to protections for servicemembers.
NIADA reminds dealers that servicemembers enjoy certain protections under both the Military Lending Act and the Servicemembers Civil Relief Act. Under the Servicemembers Civil Relief Act, creditors must reduce the interest rate on debts to 6 percent for liabilities incurred before the borrower entered active duty, including car loans. That protection applies to National Guard and reserve members who may be called for active duty.
Careful consideration of a borrower’s status should be made to ensure you are not violating these protections. Lenders and auto dealers alike may face increased attention as lawmakers and regulators examine whether servicemembers are receiving fair and equitable treatment in the auto lending marketplace. The CFPB’s supervisory and enforcement priorities under the Trump administration include providing redress to service members, their families and veterans.
