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This is a discussion on Supporting the Troops! within the Current Events forums, part of the Tech Support Forum category. House Republicans are pushing legislation to block predatory lending protections for American soldiers, under pressure from the banking lobby. GOP


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Old 05-01-2015, 06:11 PM   #1
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House Republicans are pushing legislation to block predatory lending protections for American soldiers, under pressure from the banking lobby.

GOP lawmakers tucked the deregulation item into the National Defense Authorization Act -- a major bill setting the military's funding, along with a number of other controversial terms on Guantanamo Bay and other issues. If the banking item is enacted, it would impose a one-year delay on new Department of Defense rules meant to shield military families from abusive terms on payday loans and other forms of high-interest credit. The bill is being considered Wednesday before the House Armed Services Committee.

The military has been struggling with the financial impact of predatory lending on service members for years. A 2014 report issued by the Consumer Financial Protection Bureau documents a host of abuses targeting troops. One family that took out a $2,600 loan ended up paying back $3,966.84 over the course of a year. Another borrower spent $1,428.28 to pay off a $485 loan in just six months. Thousands of service members receive short-term, high-interest loans each year.

In 2006, Congress passed legislation imposing a 36 percent cap on interest rates for payday loans, auto title loans and tax refund anticipation loans to military families. Lenders responded by slightly tweaking the terms of their loans to avoid the limits. Since the law applied to payday loans with terms of 91 days or less, and amounts of $2,000 or less, credit companies were able to shirk the rules with 92-day loans, or loans of $2,001.

Big banks were even more creative, issuing "deposit advance products" -- functionally almost identical to payday loans, but with a different name and with effective annual interest rates of around 300 percent. Congress responded to these tricks in 2012 by passing another law directing the Pentagon to fix these loopholes, and new rules were finalized in September of last year.
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It is unconscionable," Public Citizen President Robert Weissman said in a written statement. "It is a sign of just how indebted certain members of Congress are to corporate interests that a critical, commonsense regulation that is needed to protect our national security can be sacrificed in service to the predatory lending industry."

The American Bankers Association -- the primary lobbying group for the banking industry -- has lobbied against the Pentagon rules, specifically seeking to shield deposit advance products from their scope.
. . unless it takes money away from the banks!


House Republicans Want To Block Predatory Lending Protections For American Troops
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Old 05-01-2015, 06:18 PM   #2
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Things like this have been going on a long time. I remember the bank on one post would hold government-issue checks for three weeks or more until the servicemen, thinking that they had cleared, would write a check. Then, even though the bank had the covering deposit check, they would charge $60 in penalties and fees for the "overdraft."
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Old 05-01-2015, 06:19 PM   #3
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I would expect those who represent us in Congress would do better . .

Silly me . .
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Old 05-02-2015, 02:01 AM   #4
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Originally Posted by Old Rich View Post
I would expect those who represent us in Congress would do better . .

Silly me . .

Thou doest expect far too much.......

The direction this country is headed is where we do not want to be. Those who were elected to represent us are failing miserably.......
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