September 2006  Interest Rates on Payday Loans Limited September 29, 2006 "WASHINGTON - Interest rates on payday loans to military service members would be limited under an agreement reached Friday by House and Senate Republicans. The measure imposing a 36 percent cap on the annual interest rate for payday loans to service members or their spouses will be included in the defense authorization bill, which Congress was expected to approve later Friday."  Advance America Stops Lending to Military September 29, 2006 "A national payday loan provider with offices in Texas will stop lending money to active duty members of the U.S. military. Advance American Cash Advance Centers Inc. decided to discontinue the short-term, high-interest loans due to concerns that the move somehow affects military readiness, the El Paso, Texas, Times reports. For such a loan a borrower will write a check for the loan plus fees and the lender will hold the check until a future date, usually the next pay day. Congress has proposed capping the interest rate at 36 percent but loan companies say that doesn't let them cover their costs."  Lawmakers agree on 36 percent payday loan cap September 21, 2006 "Congressional negotiators have decided that protecting military paychecks is more important than jurisdictional squabbles, and have agreed to include a 36 percent cap on loan interest rates and fees in the 2007 defense authorization bill. The loan limit, which would apply to money borrowed by active-duty service members and their spouses, is aimed at so-called payday operations that provide high-interest, short-term loans, according to sources involved in working on the compromise bill."  Congress passes military protection bill September 21, 2006 "A similar House bill that passed in June, 2005, included language to protect military members from abusive lending practices, but the Senate-passed bill did not take up the lending issue. At a Senate Banking Committee hearing last week, a Pentagon official urged Congress to limit interest rates on payday loans under which service members, often only 18 or 19 years old, get loans with astronomical interest rates to tide them over until the next payday. Davis has opposed language in the Senate version of a pending defense spending bill that would cap annual interest rates for payday loans at 36 percent."  Fight Against Unscrupulous Lenders Hits Snag September 15, 2006 "Bipartisan furor may have erupted on Capitol Hill against high-interest, high-fee loans that target and entrap military members in a web of debt, but questions also have surfaced about what happens to service members who need a few extra dollars if those short-term loans become unavailable. Sen. Tim Johnson, D-S.D., whose son is an Army enlisted man, raised that issue during a Sept. 14 Senate hearing on the Pentagon's calls for new federal laws to protect service members. "If we are to eliminate payday lending altogether or make it unusable, the question is, who fills the void?"  Credit Unions Offer Payday Loan Alternative September 15, 2006 "The federal government is looking at ways to protect soldiers from predatory payday loans that charge high interest rates. North Carolina has already cracked down on lenders, so local credit unions are now offering alternatives. The promise of thousands of dollars in just a few minutes seem appealing, but in reality, cash advances can be very costly because of high interest rates which cause some people to have to take out multiple loans. "You get in a cycle of debt where you can't get that repaid," said David Elliott, the President and CEO of Fort Bragg Federal Credit Union."  On Payday, Many GIs Pay Back September 9, 2006 "Six months ago, John Elliott, a sailor based at Norfolk Naval Station, was having trouble keeping up with his bills, so he went looking for a quick source of cash to tide him over. He took out what's known as a payday loan, borrowing against future paychecks in exchange for money on the spot. Elliott borrowed a total of $1,600 from four lenders, but the high fees he was charged each time he took out or renewed his loans made them hard to pay off. In another six months, his debt could balloon to as much as $4,480."  California Lawmakers Reject Predatory Lending Protection Bill September 8, 2006 "Navy officials said they will continue to pursue predatory lending legislation after California lawmakers significantly weakened language and then voted against Assembly Bill (AB) 1965 on the last day of session, Aug. 31. Lawmakers in the California Senate rejected a bill that proposed a 36 percent rate cap for payday loans, deferral of payments while deployed and a grace period for up to 30 days upon a service member returning from a deployment."  Report On Predatory Lending Practices Directed at Members of the Armed Forces and Their Dependents (PDF) September 1, 2006 (Posted by the DoD on August 9, 2006) "This report, produced by the U.S. Department of Defense, is in answer to the requirements established in Section 579 of the National Defense Authorization Act for Fiscal Year 2006, which states as follows: SEC. 579. REPORT ON PREDATORY LENDING PRACTICES DIRECTED AT MEMBERS OF THE ARMED FORCES AND THEIR DEPENDENTS."  Lawmakers, DoD Take Aim at Payday Loan Sharks September 1, 2006 "Interest is building on Capitol Hill in putting a nationwide cap on the interest rates lenders can charge service members for loans, a measure the Defense Department is pushing to protect its force. A General Accountability Office (GAO) study released last month offers insight into how payday-lending businesses frequently gouge troops short of cash by charging exorbitant interest rates on loans borrowed against their next paychecks. "The Report On Predatory Lending Practices Directed at Members of the Armed Forces and Their Dependents" notes that as many as one in five service members are falling prey to loan centers near military bases."  CFSA: Pentagon's Payday Loans Report 'Flawed' September 1, 2006 "The Pentagon has joined forces with "fringe activists," says a payday lending industry organization that is critical of the Defense Department's recent report to Congress about the impact of payday loans. The report "is nothing but a re-hash of flawed data, biased analysis and anti-business philosophy pushed by fringe activists," says a press release issued Thursday by the Community Financial Services Association of America, a national trade association representing payday lenders."

Information about Military Loans for U.S. Military Personnel

Military loans can be a blessing, or a curse, for U.S. Military personnel in need of quick money for emergencies, travel, etc. Here at MilitarySpot we know many military people who have benefited from the assistance of military loans, but we also know more than a few who have been ripped off. Unfortunately, there are many lenders out there who are charging military personnel exorbitant interest and fees for loans. Many of these lenders are located just outside military bases, and some prey on military service members on the Internet. As "former military" ourselves, we want to be fair about what we recommend to military people on the issue of military loans. First, we suggest that you visit your military base assistance office (the office that helps military families, spouses, etc.). A no-interest or low-interest loan may be available. Second, we suggest that you check out Pioneer Military Loans. We recommend Pioneer Military Loans when loans are not available to you through your base or other military support organization. Pioneer charges fair rates and has good standing within the military community. Above, for your reference, is a news log of articles concerning loans for military people. More Military Loan Information...

PIONEER MILITARY LENDING - PERSONAL LOANS UP TO $10,000 MilitarySpot.com recommends Pioneer Military Loans for your personal loan needs. Pioneer Military Lending is committed to serving the active-duty and career-retired men and women of our armed forces. Our secure and private online loan service is designed to provide you with the convenience and accessibility you need. We offer competitive interest rates and loan products for all ranks, and our online application is available 24 hours a day, seven days a week. All of our loan products are backed by our Four-Star Guarantee. If you're not 100% completely satisfied with your service, you can cancel your loan within 15 days at NO cost to you. Click Here

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