Military Payday Loan Bill Passed in California
By J.J. CameronPayday Loan Writer
The military payday loan crusade continues to garner support from both sides.
In Sacramento today, the Assembly easily passed legislation that aims to protect members of the military and reservists from overzealous collectors of online payday loans.
Carried by Assemblyman Ted Lieu (D-El Segundo) the legislation prohibits payday loan companies from seeking to garnish wages or from contacting superior officers. It also would require payday loan companies to honor repayment agreements negotiated through credit counselors.
The measure also would allow members of the service, reservists or spouses to defer payment for 180 days on their faxless payday loans from the date of deployment. Members of the National Guard also are included. Lieu, a Democrat who served in the Air Force, said the standards in the legislation would "clearly protect our military from being taken advantage of by payday loan companies and having their credit damaged beyond repair."
The measure "is one way we can ease the financial struggles of those who serve our nation and help sustain their morale by providing financial relief during deployments," he said.
