Legislation Aims to Protect Veterans and Consumers from Predatory Lenders
Senator Sherrod Brown says veterans—and all consumers--deserve the same protections active duty military received under the Military Lending Act passed in 2006.
He’s introduced legislation to do that.
“There are lots of pay day lending companies that prey on our service men and women.”
The Military Lending Act capped annual percentage rates on financial loans at 36%. Brown says when a person needs cash to fix a car or cover some other unexpected expense the costs add up, with interest rates regularly escalating to as high as 650%.
“The average pay day lender relationship like that is about 10 loans every time they go for the first one and that puts people in a place they can’t get out of," Brown said.
He has introduced the Veterans and Consumers Fair Credit Act that would extend that 36% interest rate cap to all people.
“I know how important this is. I hear it from soldiers, veterans, public all the time how important the Veterans and Consumers Fair Credit Act is,” Brown said.
Brown says the bill has the support of a number of veterans groups and consumer advocacy organizations.