Defend Military Families Against Predatory Loans

 

One in ten troops take out high-interest loans in order to make ends meet. As an Army veteran and former congressman, I know how important it is to protect servicemembers against predatory lending practices.

That was the idea behind the Military Lending Act of 2007, which, among other important things, set a 36 percent limit on interest and fees for consumer loans to military personnel and their dependents.

But the task of translating that law into practical do’s and don’ts fell to the Defense Department, which settled on a body of rules that left plenty of room for evasion. The result? Abusive lenders went right on targeting military families with loans at 300 percent interest and up.

Stop swindling our soldiers! No more triple-digit interest loans to servicemembers and their families!

Now the DOD is moving to update its rules in order to truly carry out the law’s mandate. This time, its proposals are strong enough to make the 36 percent rate cap stick. But the rulemakers — and the military and consumer advocates who led the fight for this crackdown — are bracing for another campaign of intense resistance by a politically as well as economically powerful industry.

Join us in urging the Defense Department to stand by its proposed rules and stop high-cost lenders from preying on the military.

Our men and women in uniform have plenty on their minds. In service to their country, they willingly go on long deployments, leaving friends and family behind. Lenders should not be allowed to take advantage; loans with triple-digit interest rates and onerous repayment terms shouldn’t hang over their heads.

Thank you for your support.

Sincerely,

Patrick Murphy