From the Associated Press:
WASHINGTON (AP) - Interest rates on payday loans to military service members would be limited under an agreement reached Friday by House and Senate Republicans.
The measure imposing a 36 percent cap on the annual interest rate for payday loans to service members or their spouses will be included in the defense authorization bill. The House passed the authorization bill Friday, but it stalled in the Senate.
"We need to enact these new protections for our troops and their families because a growing predatory lending problem has impacted our operational readiness," said Sen. Jim Talent, R-Mo., who pushed the measure in the Senate.
Talent and other lawmakers contend payday lenders target military personnel, offering quick cash advances at outrageously high interest rates that trap unsavvy borrowers in a cycle of debt.
4 comments:
I thought the same thing as Show Me Girl: 36%!!!
This is protection?
It seems that every corner in Springfield now has the same quick cash stores.
I understand this proposed legislation has some merit--payday loans are a necessary evil for many, many Americans, and they tend to become a vicious cycle. But why is this only focused on military families? Does this mean that if you're not in the military, a payday loan company can charge you 40% interest?
In Springfield, as busplunge noted, payday loan stores are ubiquitous, and I'm certain the majority of borrowers are not active military.
Either enact the legislation for everyone or leave it alone.
The left is really clueless on this issue. The problem is not the intrest rates but the fact that 18year old kids start spending money like there is no tommorow and like the lifestyle it brings and then ends up borrowing more to live a higher lifestyle. Go to any city next to a base and you'll see the truth. Our joke of a public school system does not teach these kids how to budget, balance a checkbook, or refuse credit cards. Do not blame the business for the persons own downfall. Put blame where it belongs. Their pay is pretty high compared to many here in Springfield. I have several family members serving now and they live in their means and have no need to visit loan sharks. So your crying should be at our school board telling them to teach some common sense.
I agree that taking out payday loans regularly can be a bad habit to get into, but in times like these it is necassary for a lot of people. As long as these people are paying back their loans on time, the interest rates aren't above normal credit card rates.
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