Two congressmen that are democratic sponsoring a bill that will further stiffen restrictions
on pay day loans that target military users or their own families, particularly if it comes down to pensions that are federal.
The Annuity Safety and Security Under Reasonable Enforcement (ASSURE) Act, introduced by Reps. Matt Cartwright of Pennsylvania and Gerry Connolly of Virginia, and co-sponsored by two dozen lawmakers, would also protect various other types of federal employees.
"this will be exploitation, pure and easy," Connolly told the Washington Examiner. "we are speaking about the targeting of military families, often with one partner presently serving in Iraq and Afghanistan."
Payday advances, also called a "cash loan" or "check always loans," is "a short-term loan, generally speaking for $500 or less, this is certainly typically due in your next payday," in line with the customer Financial Protection Bureau.
This year, interest rates for military loans are capped at a 36 percent of the military annual percentage rate under the Military Lending Act, passed in 2006 and expanded in scope. The ASSURE Act would get further, capping prices at "six points above prime," Connolly stated.
The Examiner reported in December 2014 on types of payday financing to armed forces solution people that reached rates because high as 300 per cent.
" the present guidelines beneath the Military Lending Act are similar to delivering a soldier into fight with a flak coat but no helmet. The rules need to be expanded," Consumer Financial Protection Bureau Director Richard Cordray said in December to give our troops full-cover protection.