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ceived counseling under paragraph (1) regarding the pur-
chase of coverage under that private sector life insurance.
‘‘(B) Subject to subparagraph (C), a written certifi-
cation described in subparagraph (A) may not be made
with respect to a member‘s authorization of allotment as
described in subparagraph (A) until seven days after the
date of the member’s authorization of allotment in order
to facilitate the provision of counseling to the member under
paragraph (1).
‘‘(C) The commander of a member may waive the ap-
plicability of subparagraph (B) to a member for good cause,
including the member’s imminent change of station.
‘‘(D) In this paragraph, the term ‘covered member of
the armed forces’ means an active duty member of the
armed forces in grades E–1 through E–4.
‘‘(d) FINANCIAL SERVICES DEFINED.—In this section,
the term ‘financial services’ includes the following:
‘‘(1) Life insurance, casualty insurance, and
other insurance.
‘‘(2) Investments in securities or financial in-
struments.
‘‘(3) Banking, credit, loans, deferred payment
plans, and mortgages.’’.
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(2) CLERICAL AMENDMENT.—The table of sec-
tions at the beginning of such chapter is amended by
adding at the end the following new item:
‘‘992. Consumer education: financial services.’’.
(b) CONTINUING EFFECT OF EXISTING ALLOTMENTS
FOR LIFE INSURANCE.—Paragraph (c)(2) of section 992 of
title 10, United States Code (as added by subsection (a)),
shall not affect any allotment of pay authorized by a mem-
ber of the Armed Forces before the effective date of such sec-
tion.
(c) EFFECTIVE DATE.—The amendments made by this
section shall take effect on the first day of the first month
that begins more than 120 days after the date of the enact-
ment of this Act.
SEC. 599. REPORT ON PREDATORY LENDING PRACTICES DI-
RECTED 
AT 
MEMBERS 
OF 
THE 
ARMED
FORCES AND THEIR DEPENDENTS.
(a) FINDINGS.—The Senate makes the following find-
ings:
(1) Predatory lending practices harm members of
the Armed Forces and are an increasing problem for
the Armed Forces.
(2) Predatory lending practices not only hurt the
financial security of the members of the Armed Forces
but, according to the Under Secretary of Defense for
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Personnel and Readiness, also threaten the oper-
ational readiness of the Armed Forces.
(3) The General Accountability Office found in
an April 2005 report that the Department of Defense
was not fully utilizing tools available to the Depart-
ment to curb the predatory lending practices directed
at members of the Armed Forces.
(b) SENSE OF SENATE.—It is the sense of the Senate
that—
(1) the Department of Defense should work with
financial service regulators to protect the members of
the Armed Forces from predatory lending practices;
and
(2) the Senate should consider and adopt
legislation—
(A) to strengthen disclosure, education, and
other protections for members of the Armed
Forces regarding predatory lending practices;
and
(B) to ensure greater cooperation between
financial services regulators and the Department
of Defense on the protection of members of the
Armed Forces from predatory lending practices.
(c) REPORT.—
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(1) REPORT REQUIRED.—Not later than 90 days
after the date of the enactment of this Act, the Sec-
retary of Defense shall, in consultation with the Sec-
retary of the Treasury, the Chairman of the Federal
Reserve, the Chairman of the Federal Deposit Insur-
ance Corporation, and representatives of military
charity organizations and consumer organizations,
submit to the appropriate committees of Congress a
report on predatory lending practices directed at
members of the Armed Forces and their families.
(2) ELEMENTS.—The report under paragraph
(1) shall include—
(A) a description of the prevalence of preda-
tory lending practices directed at members of the
Armed Forces and their families;
(B) an assessment of the effects of predatory
lending practices on members of the Armed
Forces and their families;
(C) a description of the strategy of the De-
partment of Defense, and of any current or
planned programs of the Department, to educate
members of the Armed Forces and their families
regarding predatory lending practices;
(D) a description of the strategy of the De-
partment of Defense, and of any current or