Two congressmen that are democratic sponsoring a bill that could further stiffen limitations

Two congressmen that are democratic sponsoring a bill that could further stiffen limitations

on pay day loans that target military users or their own families, specially when it comes down to federal retirement benefits.

The Annuity protection and Security Under Reasonable Enforcement (ASSURE) Act, introduced by Reps. Matt Cartwright of Pennsylvania and Gerry Connolly of Virginia, and co-sponsored by two dozen lawmakers, would protect some other also types of federal employees.

“this will be exploitation, pure and simple,” Connolly told the Washington Examiner. “we are speaking about the targeting of army families, often with one partner presently serving in Iraq and Afghanistan.”

Pay day loans, also called a “cash loan” or “check loans,” is “a loan that is short-term generally speaking for $500 or less, that is typically due in your next payday,” in line with the customer Financial Protection Bureau.

This year, interest rates for military loans are capped at a 36 percent of the military annual percentage rate under the Military Lending Act, passed in 2006 and expanded in scope. The ASSURE Act would get further, capping prices at “six points above prime,” Connolly said.

The Examiner reported in December 2014 on types of payday financing to army solution users that reached rates because high as 300 per cent.

” the present guidelines beneath the Military Lending Act are comparable to giving a soldier into fight with a flak coat but no helmet. To provide our troops full-cover security, the rules should be expanded,” Consumer Financial Protection Bureau Director Richard Cordray stated in December.