Archive Links

Consumer Archive
CU System Archive
Market Archive
Products Archive
Washington Archive
150x172_CUEffect.jpg
Contacts
LISA MCCUEVICE PRESIDENT OF COMMUNICATIONS
EDITOR-IN-CHIEF
MICHELLE WILLITSManaging Editor
RON JOOSSASSISTANT EDITOR
ALEX MCVEIGHSTAFF NEWSWRITER
TOM SAKASHSTAFF NEWSWRITER

News Now

Washington
Reed amendment seeks to shield troops from shady lending
WASHINGTON (12/1/11)--Sen. Jack Reed (D-R.I.) has proposed legislation that would "enhance the Military Lending Act by closing loopholes that allow lenders to charge exorbitant fees" on some loans that are provided to service members and their families.

The Department of Defense (DoD) in 2007 implemented a rule that applied a 36% cap to payday loans, vehicle title loans, and tax refund anticipation loans to military service members and their dependents. The cap covers all members of the military, reserves, National Guard, and their families.

Reed in a release said the amendment would apply the DoD mandated standards to both "open-end" credit and "closed-end" credit, and would "help end the practice of charging high-cost overdraft fees." The amendment would also prevent financial service providers from reordering customer transactions from largest to smallest to maximize overdraft fees that can be charged.

The amendment has been proposed as an addition to the 2012 Defense Authorization bill.
Other Resources

RSS





print
News Now LiveWire
Which Children's Miracle Network Hospital is the winner of @CUDirect's 20 for 20 grand prize? Find out Tuesday.
3 hours ago
Gas prices have fallen for a record 88 days in a row says @AAAnews via @washingtonpost http://t.co/c52VTdqHEB
5 hours ago
.@TheNCUA releases regulatory modernization initiative results (PDF link) http://t.co/pgLZe4aget
6 hours ago
#FinCEN seeks nominations of FIs, trade groups for membership on Bank Secrecy Act advisory group http://t.co/l5w58c277W
7 hours ago
MI pediatric dentist pledges $20K match to Hurley Children's Hospital if it wins @CUDirect's 20 for 20 http://t.co/Eq2nIPm6jo
7 hours ago