San Antonio Express: Military payday loan rules welcome
September 16, 2015
Recently approved federal rules aimed at closing loopholes in the Military Lending Act provide much-needed protection from predatory lenders.
When signed into law by then-president George W. Bush, the Military Lending Act was supposed to stop the targeting of U.S. servicemen and -woman by companies pushing high-cost payday and car title loans. It did not work out that way.
Before long, the high-cost lenders found loopholes and continued pursuing their predatory lending practices.
The original legislation capped interest at 36 percent for loans of $2,000 or less due within 91 days. That prompted lenders to immediately began offering loans for just over $2,000, sometimes just a dollar more, and extending lending periods to 92 days or more.
Read more here.