Archive Links

Consumer Archive
CU System Archive
Market Archive
Products Archive
Washington Archive

News Now

Washington
Reed amendment seeks to shield troops from shady lending
WASHINGTON (12/1/11)--Sen. Jack Reed (D-R.I.) has proposed legislation that would "enhance the Military Lending Act by closing loopholes that allow lenders to charge exorbitant fees" on some loans that are provided to service members and their families.

The Department of Defense (DoD) in 2007 implemented a rule that applied a 36% cap to payday loans, vehicle title loans, and tax refund anticipation loans to military service members and their dependents. The cap covers all members of the military, reserves, National Guard, and their families.

Reed in a release said the amendment would apply the DoD mandated standards to both "open-end" credit and "closed-end" credit, and would "help end the practice of charging high-cost overdraft fees." The amendment would also prevent financial service providers from reordering customer transactions from largest to smallest to maximize overdraft fees that can be charged.

The amendment has been proposed as an addition to the 2012 Defense Authorization bill.
Other Resources

RSS print
News Now LiveWire
Large CU stress testing on the agenda for the April @theNCUA open meeting http://t.co/2TUcnmCmPi
1 Day ago
#FinancialLiteracyMonth Test your college financial aid knowledge @nasfaa http://t.co/xgrDmHaw8W
2 hours ago
Join @theNCUA #NCUAchat with @KenWortheyJr on April 23 from 11am to 12pm EST http://t.co/TnNmfFh4Nl #FinancialLiteracyMonth
3 hours ago
Maine's patent troll bill has become law. Read more in Monday in @NewsNowLiveWire
6 hours ago
Wash. DFI discusses serving legal marijuana businesses with @NWCUA http://t.co/3kw79HJUYF
6 hours ago