Military loans
Service members often fall pray to predatory lending agencies and financial firms.
U.S. Marine Corps photo by Sgt. Bryan Peterson

How Predatory Lenders Rip Off Military Families

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A story by Leo Shane III in Military Times details how lending agencies are able to apply charges and penalties to short-term loans to military members that are predatory and debilitating, citing a report from Consumer Financial Protection Bureau.

Current federal regulations cap interest rates on loans to military members at 36%, but the rules are woefully insufficient to protect service members and their families from predatory lenders, Shane’s report details.

“The current rules … are akin to sending a soldier into battle with a flak jacket but no helmet,” CFPB Director Richard Cordray said in a statement to Military Times. “To give our troops full-cover protection, the rules need to be expanded.”

Get the full story at Military Times.