Military and Payday
Payday lenders survive by keeping customers caught in long-term debt, and before 2007, members of the American military service were not off-limits. In fact, payday loan stores clustered around bases, promising quick cash to military families in need, who, when they borrowed from a payday lender more often than not ended up caught in debt at triple-digit interest. Congress acted to protect military families from this predation by including a measure in the Defense Authorization Act of 2006 that prohibits payday and title lenders from charging higher than 36 percent APR. The lawmakers were...