The U.S. Department of Defense recently made public a report that looks into the Military Lending Act. The report, named the "
Military Payday Lending Report," specifically determines whether changes to the act are needed to protect military members from predatory lenders. This report has been released to the Hill and offices within the Pentagon.
The report shows a justification for amendments to the Military Lending Act which protects covered borrowers from continuing and evolving predatory lending practices. The report finds that 11 percent of enlisted military members use payday lenders with annual percentage rates over 36 percent APR. Financial counselors and military attorneys say that the high price of credit contributes to military members resorting to predatory lenders.
Any credit union that deals specifically with military members is encouraged to look at the report.