Military Payday Loan Makes Its Way to Congress
By J.J. CameronPayday Loan Writer
Having garnered plenty of support, a military payday loan report has made its way all the way to Congress this week.
The Defense Department study sent shows that Congress must stop predatory, no fax payday loan lenders from preying on our soldiers, sailors and aviators, said President Michael Calhoun of the nonprofit Center for Responsible.
The Pentagon paper says payday advance lenders should charge no more than 36 percent annual percentage rates on their loans to service members, the same cap many states impose in their usury laws in order to ban payday loan sharking. Senator Jim Talent was mainly responsible for moving on this issue.
"I applaud the Defense Department's report," Mr. Calhoun said. "Military families need protection from these predators. We must protect the people who protect us."
Congress asked the Department of Defense to investigate these faxless payday loan lenders and how they gouge our service people and hurt the country's preparedness for war.
The Department of Defense found that soldiers, sailors and aviators are as many as four times more likely to be victims of payday providers around the nation. These lenders cluster around military bases, the report found.
Military payday loan companies undermine military readiness, harms the morale of troops and their families, and adds to the cost of fielding an all-volunteer fighting force, the report stated.
Sen. Talent (R-MO) and Sen. Bill Nelson (D-FL) amended a defense budget bill to impose the 36-percent cap, and the bill has passed the Senate. It must now be approved by a House-Senate conference committee before it can become law.
The Center for Responsible Lending supports additional protections recommended by the Department of Defense, including a ban on no faxing payday loans secured by personal checks or car titles.
