Department of Defense Proposes Military Lending Act Regulations to Protect Soldiers

The Times has the story under the headline Tougher Shield for Soldiers Against Predatory Lenders.  The proposed regulation closes loopholes like these described in the Times story:

The law set a 36 percent interest rate cap on a range of high-cost loan products. But the protections applied to a narrow sliver of loans, covering only loans for up to $2,000 that lasted for 91 days or fewer. It also covered auto-title loans with terms no longer than 181 days. To get around the restrictions, some lenders simply altered their products to evade the restrictions. Some offered loans for just over $2,001, or for periods that were just over 181 days.

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