Payday loans are short-term loans borrowers take out against their next paychecks. They have been widely condemned for their sky-high interest rates, which can range from 400 to more than 1000 percent. Payday lenders target military families by locating in base communities.
An amendment has been proposed in the US Senate that would cap the annual percentage interest rates that can be charged for loans made to military personnel and their spouses at 36%. Amendment SA 1523 to the fiscal year 2006 military appropriations bill S. 1042 is backed by the Military Coalition, an umbrella group of 30 military associations.
You can take action today to protect our troops from unfair lending. Send a letter via e-mail to your Senators, asking them to support this amendment, by clicking this link:
Let your Senators know SA 1523 will protect military families from the payday loan debt trap!
As reported in the Army Times and other military publications, the average enlisted servicemember lives on a relatively low income and cannot afford to be taken advantage of by outrageously high interest rates.
The addictive nature of payday lending and its destructive effects on communities have been confirmed by state regulators, several independent studies, the FDIC, and even payday lenders' own company data.
SA 1523 is similar to legislation introduced in the US House, the Servicemembers Anti-Predatory Lending Protection Act (HR 97), which currently has 46 bipartisan co-sponsors (20 Democrats & 26 Republicans).
The Community Reinvestment Association of North Carolina's mission is to promote and protect community wealth. Committed to creative advocacy, CRA-NC uses research, education, mobilization, media, litigation, regulatory challenges, legislative advocacy and stockholder actions to initiate change. Join the fight for economic justice!
CRA-NC http://www.cra-nc.org (919) 667-1557 114 W. Parrish St, Durham NC 27701