Published: May 2015

Lawmakers siding with predatory payday lenders over troops

Consumer Action and coalition advocates wrote to the House Committee on Rules asking members to oppose Amendment #268 of the FY2016 National Defense Authorization Act. The unnecessary database certification requirement will delay the Department of Defense’s regulatory efforts meant to make it more difficult for payday lenders to target troops with predatory offers. The amendment would put servicemembers at risk of financial harm in order to protect abusive lenders.

Introduced by Ohio Rep. Steve Stivers (a congressman who receives substantial campaign contributions from payday lenders), amendment #268 to the FY2016 National Defense Authorization Act would delay the Department of Defense’s (DoD) attempts to protect troops from predatory lending until a host of unrealistic technical certifications could be made for a database of active-duty military members.

The DoD has described payday and other high-cost lending as “the biggest, current financial challenge facing our servicemembers, Veterans, and their families.” In 2014, a DoD report found that one in ten enlisted servicemembers were targeted by payday lenders and other high-cost lenders that were evading the Military Lending Act’s 36 percent annual interest rate cap established by Congress in 2006.

Other Organizations

Americans for Financial Reform | American Association for Justice | Center for Digital Democracy | Center for Responsible Lending | Colorado Progressive Coalition | Consumer Action | Consumers for Auto Reliability and Safety | Consumer Federation of America | Consumers Union | Fleet Reserve Association (FRA) | Grass Roots Organizing (MO) | Idaho Community Action Network | Illinois People's Action | Iowa Citizens for Community Improvement | Maine People’s Alliance | NAACP | National Association of Consumer Advocates | National Consumer Law Center (on behalf of its low-income clients) | National People’s Action | Other98 | Public Citizen Reinvestment Partners (NC) | Tennessee Citizen Action | US PIRG | Woodstock Institute (IL)

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Lawmakers siding with predatory payday lenders over troops   (opposeamendment268NDAA.pdf)

 
 

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