EANGUS will be on this call
2:30PM EDT TODAY: White House Outreach Call on Military Lending Act
WASHINGTON, DC – Today, Tuesday, July 21, at 2:30PM EDT, Administration Officials will host an outreach call to further discuss the President’s announcement that the Department of Defense (DOD) today published final Military Lending Act rules closing harmful loopholes to better protect our troops and their families from predatory lending.
Background
Legislation was originally passed in 2006 By GORDON LUBOLD July 21, 2015 6:00 a.m. bottes ugg ugg france nike air max 2017 femme rouge ET http://www.wsj.com/articles/u-s-to-expand-military-lending-act-in-effort-to-protect-service-members-1437472801 WASHINGTON—President Barack Obama is expected to announce Tuesday a significant expansion of regulations that protect U.S. military service members and their families from predatory lending practices, making it harder for financial firms to charge high interest rates under current laws. In announcing the implementation of regulations under the Military Lending Act, which was first passed in 2006, Mr. asics gel nimbus 17 homme Obama is aiming at loopholes that have allowed some financial institutions to charge interest rates in the triple digits, forcing service members and their families deeper into debt. Asics Gel Nimbus 18 Homme Mr. AIR MORE UPTEMPO Adidas Zx Flux Homme New Balance 420 homme Nike Air Max 90 Homme Obama will speak at a Veterans of Foreign Wars convention in Pittsburgh on Tuesday, where he is expected to address an array of issues facing veterans, including the shooting deaths of five service members last week in Chattanooga, Tenn. Adidas Zx Flux Femme Rose Adidas Zx 700 Homme Nike Free 5.0 Femme Nike Roshe Run Fleur Femme The change to the military lending law redefines the kinds of loans and loan products that fall under the existing law, which caps the interest service members and their families pay on such loans at a 36% effective rate. Adidas Femme asics gel lyte 3 mujer negras That is far lower than the effective rates some paid for short-term, small loans—such as for vehicles or to cover expenses between paychecks—that can cost service members thousands of dollars in interest. Under Armour Ua Curry 3 Asics Kinsei 5 asics gel noosa tri Stanford Cardinal Jerseys Canotte Detroit Pistons Utah Jazz The changes essentially expand the kinds of credit products that now must comply with a 36% cap. New Balance 997.5 femme sac fjallraven kanken Canotte Charlotte Hornet Previously, creditors would skirt that cap by offering military consumers products like rolling lines of credit that didn’t fall under the law, allowing them to charge excessive rates. Mujer Air Jordan 12 VALCLEAN2 CMF
Now, all such credit products will be capped at 36%. New Balance 997 mujer The change also aligns the definition of “consumer credit” with the federal Truth in Lending Act, maintains the 36% cap and prohibits creditors from requiring service members to submit to mandatory arbitration and onerous legal proceedings. asics gel lyte 5 donna nike dynamo free The Military Lending Act falls under the Dodd-Frank Wall Street Reform and Consumer Protection Act, the controversial bill passed five years ago, which administration officials said provides Americans with a wide range of consumer protections. air max 2017 grigio uomo
Payday lenders prey on service members and their families at twice the rate that they use to target civilians, U.S. nike air max 90 hombre adidas stan smith femme officials said. Los Angeles Clippers
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Holly Petraeus, assistant director of the Consumer Financial Protection Bureau, which has advocated on behalf of military families, quoted one independent report that concluded that such lenders crowd around military bases “like bears in a trout stream.” She said such lending practices hurt military readiness, distract service members and in some cases force some service members with dire financial problems out of the military altogether. “If they’re charging outrageous rates, it’s hurting service members and their families, and, by extension, the nation’s defense,” said Ms. Air Max 2017 Donna Bianche
Petraeus in a conference call Monday evening with reporters. Nike Air Max 90 Femme Fleur nike air max tn uomo Air Max 87 Pas Cher
The original Military Lending Act was created to address the issue, and set the 36% interest cap. Womens Nike Air Huarache Nike Air Max 2017 blanche Homme But lending institutions quickly found that there were ways around the law by offering lines of credit or other loan products that skirted the legislation. Mujer Air Jordan 6 adidas chaussure femme Fjallraven Kanken No.2 For example, if a loan exceeded $2,000 or if the term was more than 91 days, those loans didn’t fall under the lending law. Nike Free Run femme Goedkoop Nike Air Max 2017 Canotte nba swingman “The universal opinion was, it needs to cover more,” one defense official said of the original law. Pentagon officials say they aren’t able to track how many individuals have been affected by payday lenders. Ohio State Buckeyes Anecdotal data suggests that some service members paid as much as 600% to 700% for the life of their loans, or even four times the amount of the original loan, a senior defense official said. Cleveland Cavaliers Such financial institutions typically target enlisted military personnel, who often require short-term loans for small amounts of money to cover car payments, to obtain advances on tax refunds or other kinds of loans. nike air jordan 31 homme Nike Air Max 2017 Rosso Uomo
In 2013, 41% of enlisted personnel had obtained some kind of credit, Pentagon officials said. FREE 5.0
Canotte Boston Celtics About 11% of enlisted personnel in the active duty military have obtained payday loans, which include vehicle title loans, pawnshop loans and other high-interest loans, they said.