Military Officials Want to Clamp Down on Payday Lenders Unfairly Targeting Soldiers

September 16, 2013
KXXV-TV News Channel 25 
car title lending news
All around Fort Hood in Texas, lending advertisements target soldiers who are in financial hardship, but may be afraid to tell their superiors. "They are taking advantage of soldiers," explains Better Business Bureau (BBB) Regional Director Helen Moore. "In several states, payday lenders, title loan lenders are banned or very, very highly regulated. And that's not the case in Texas." The Military Lending Act of 2006 forbids lenders from charging service members more than 36 percent interest on short-term loans, but if the loan is not paid back in full in two weeks, it can be extended at double the interest rate. BBB has reported that the Cash Store in Killeen is one lender that unfairly targets soldiers. A number of soldiers have been victimized in financial scams, prompting officials from each military branch to call for the Defense Department to revise the Military Lending Act to add more protections.

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