DOD Proposal Limits High-Interest Loans to 36 Percent per year

[Herman Munster]

http://biz.yahoo.com/ap/070410/payday_lending.html?.v=4

RICHMOND, Va. (AP) -- Servicemembers and their dependents could pay no more than 36 percent annual interest on payday loans, vehicle title loans and refund anticipation loans under a preliminary draft of a law intended to stop high-interest loans to the military.

The U.S. Department of Defense's draft proposal, a copy of which was obtained by The Associated Press on Tuesday, was a blessing for banking and consumer lending groups that had feared the law would be interpreted so broadly that it would include many common practices such as credit cards, overdraft protection on checking accounts and direct bill payment.

The draft will be published Wednesday in the Federal Registrar, and the public will have 60 days to comment before it is finalized and goes into effect Oct. 1.

"I think we're both on the same wavelength that we want the bad practices to end and we don't want military families to become second-class financial customers," said Wayne A. Abernathy, executive director of financial institutions policy and regulatory affairs for the American Bankers Association.

Congress placed the APR cap on all consumer credit loans last year, giving the Department of Defense the job of deciding what practices fell under Congress' definition of "consumer credit."

[Monkeyman]

1. Oh Lets put them in the poor house. And When they get wounded with no check

[whistle]

2. Well, isn't that special, let see now one of our fighting members in

...Iraq sends his paycheck home to his family and they get to pay 36 cents of every dollar to loan sharks like Amscot, Household Finance and countless other predatory usury organizations. Got to love those reThuglicans looking out for their banking pals

[Donnachaidh]

3. you know, rates that high used to be called USURY

And where punishable under the RICO act.

The DoD should be pushing BACK the charges to a maximum of 12%. Hell -- ALL consumer credit should not go above 12%. Even that is obscene. :rant:

[madrchsod]

4. that`s fucking sick

i maybe wrong but most gi families are at or below poverty level, so the dod is doing them a "favor" and limiting the loan sharks to 36%? god this shit has to stop

[sicksicksick_N_tired]

5. Uhhh,....SCREW THAT!!! Is the DOD is cahootz with loan sharks,...

,...or somthing?

Good GOD!!! :eyes: