TOPICS
TOPICS
Negotiators agree to cap interest rates for loans to military
Conferees on the fiscal 2007 defense authorization bill agreed to include an amendment that would cap annual interest rates on loans to U.S. military personnel at 36 percent, despite strong lobbying by banking lobbyists.
Sen. Jim Talent, R-Mo., who originally proposed the language, complained that unscrupulous payday lenders were targeting uniformed personnel, which in effect threatened the country's military readiness. Some troops were paying as much as an 800 percent annual rate on loans.
The banking industry sought language that would carve out federally insured depository institutions from the proposed requirement, arguing they are already regulated by entities such as the Office of the Comptroller of the Currency and National Credit Union Administration.
But, according to a Senate aide, lawmakers only changed the language so the Defense Department would have to consult with banking regulators in devising a rule to execute the legislation.
"The measure will prevent any lender from trying to make a quick buck at the expense of the livelihood and future of those defending our freedom by charging a triple-digit interest rate," Talent said Friday. "For years, our strong coalition of supporters has been steadfast in seeing this measure get this far. Now that the conference has agreed to these new protections for our troops and their families, I'm confident that they will become law."
The provision gives Talent a populist issue to tout in his re-election bid against Democratic challenger Claire McCaskill, the Missouri auditor.
COMMENTS
- Taxpayer, You obviously never fought a day in your life for your freedoms, you seem like a "taker"...but then again this is only an assumption based on your nieve writing. I agree with GovExecs (military father of Soldier) comment's on 3Oct, 3:18PM. So please read his comments before reading this. First, let me point out that it is you who is "stupid." Yes, the Govt does have the right to impose limits to protect troops from becoming unfair victims of deceiving interest scam companies. The fact is that a military member is NOT a free citizen, they are a Govt asset to protect YOUR rights (they are owned people of the Govt). When you are in the military you are not practicing Democracy, you are protecting it. Troops have many more responsibilities then your piddly life of work, school, budgeting, and relaxation. Troops train constantly, travel to unsightly locations for operations, and deploy to war zones why you sit on your office chair ass or couch watching TV. Many of the troops who do all this are still in their teens and early 20's (young and nieve like you) who have not had the time to go to college because they are allowing you to sit on your couch. There are also troops who do attend college or graduated college before coming in the military and do not borrow from scammers (I am one of them). The military is a representation of the American public; the same scammers take advantage of the "dumb" college students too. The reason why the Govt sets limits on interest rates for military is that Govt cannot afford to have their troops overburdered and preoccupied with scams when they need to be focused on training, fighting, and staying alive which is a whole different lifestyle than being a pencil or pen warrior from behind the desk. The Govt cannot set limits on the general public because they are not "owned" by the Govt like a Soldier is....they are just "dumb" college students making "dumb" decisions, right? Or is it impossible for people who are not in the military to be dumb or stupid as you would imply? Anyway, I can go on and on and get more indepth with this, but I do not think it will help small minds such as yours...join the military for a year or two and see what you think then....live a little if you are not too big to get off your chair. B Mack Posted February 16, 2009 5:31 AM
- Taxpayer, First, in all my posts, you have never seen any comment from me about Congress knowing what is best, about anything, unless satirical. No way, don’t believe it -- but that doesn’t mean I don’t sometimes agree with what they do (and while not often, it does happen). I even agree with you sometimes, just not this time. (I have said I’m an independent and don’t care about the political labels.) And I'm not saying honest businesses can’t make a profit -- they have to in order to stay in business. But, doesn’t it seem a little odd that the payday vultures are saying they can’t make money at even 36 percent, so they are closing up shop around the military bases (please note, only closing around the military bases -- the rest of rural America look out, here they come). I don’t know about you, but if I, or even Warren Buffet, received an annualized 36 percent ROI, I’d be laughing all the way to the bank. Ted Posted October 20, 2006 7:55 AM
- Ted absolutely is correct! The government should make all our decisions because we are incapable of making them and Congress knows best. Heaven forbid the guy next to me should be worried about his debts! Government should prohibit him from getting money legally and force him to worry about getting beat up when he gets home. That way he will stay in the service and in the fighting arena because his debt collectors cannot get to him there! Boy Ted, you sure missed something not getting a college education! Taxpayer Posted October 19, 2006 7:47 AM
