Predatory Lenders Get Around The Military Lending Act Although Congress banned payday loan companies from charging excessive (and usurious) interest rates to members of the military, bases around the U.S. are still surrounded by storefront lenders charging high annual percentage rates, sometimes exceeding 400 percent. The Military Lending Act, passed in 2006, was designed to protect service members and their families from predatory lenders—but the law defined the types of covered loans so narrowly that it’s easy for lenders to get around it. “We have to revisit this,” said Sen. Dick Durbin, D-Ill., who chairs the defense appropriations subcommittee. “If [...]
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