Possible Compromise on the Way for Military Payday Loan Bill
By J.J. CameronPayday Loan Writer
On the eve of Pentagon testimony about predatory lending operations that target service members, the House Veterans’ Affairs Committee chairman appears ready to bargain on a cap on interest rates for payday loans to military members in the 2007 defense authorization bill.
Rep. Steve Buyer (R-Ind), the veterans’ committee chairman, had opposed Senate-led language capping interest rates at 36 percent for cash loans to military members and their immediate families because he didn’t think it was a defense-related issue.
However, his position reportedly softened in a closed door meeting on Tuesday with House and Senate negotiators.
New payday loan view: Buyer said he would still have preferred separate legislation on the issue, but he told negotiators he would not oppose an interest cap on instant payday loans, as long as it was part of military-related law and didn’t change veterans’ laws, according to three sources who attended the meeting.
With that concession, negotiators from the House and Senate armed services committees who are writing a compromise version of the bill are prepared to accept the Senate provision, although details must still be worked out.
Later today, David S.C. Chu - the undersecretary of defense for personnel and readiness - will testify before the Senate Banking, Housing and Urban Affairs Committee, about the harm that high-interest rate short-term loans are doing to military families.
We'll keep you apprised of this important payday advance story as it develops.
