DOD Moves Forward with Reed-Backed Plan to Improve the MLA & Halt Abusive Lending Practices
Federal Information & News Dispatch, Inc. |
Following a 2006
Today's announcement means
* Extend the 36 percent interest-rate limit to cover all interest and fees associated with the loan and is referred to as the Military Annual Percentage Rate or MAPR;
* Require the creditor to provide military borrowers with additional disclosures, including a statement that they should seek other options than high-cost credit, to include financial counseling and assistance from the Military Aid Societies; and
* Prohibit creditors from requiring service members to submit to arbitration, waive their rights under the Servicemembers' Civil Relief Act, or impose onerous legal notice requirements as a result of taking one of these loans.
"This is good news for our troops and their families that will help prevent unscrupulous lenders from targeting our soldiers and saddling them with unnecessary debt. I applaud
In addition to supporting the original MLA in 2006,
He wrote the law creating the
He also included language in the FY2013 Defense Authorization Act requiring the
"Predatory lending, unfortunately, continues to evolve, and we need to strengthen our consumer protections to keep up. Plugging these MLA loopholes is an important step toward protecting our service members and their families. It sends unscrupulous lenders a clear message: we will not allow our troops to be exploited, especially while they are fighting to protect us, and we are cracking down on abusive practices," said Reed.
According to the
360 percent Online Installment Loan - A sailor borrowed
Two-Year Car Title Loan at 125 percent APR - A service member in
400 percent Title Installment Loan - A
Now that
Read this original document at: http://www.reed.senate.gov/news/releases/dod-moves-forward-with-reed-backed-plan-to-improve-the-mla-and-halt-abusive-lending-practices
Copyright: | (c) 2010 Federal Information & News Dispatch, Inc. |
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