Tags: Obama | loans | military | rules

Obama to Announce Rules Limiting Interest on Loans to Military

Tuesday, 21 Jul 2015 07:42 AM

President Barack Obama Tuesday will announce final rules extending limits on the rates that can be charged for some loans to members of the armed forces, taking aim at what the White House says are predatory lenders who line the roads outside many military installations.

The rules, which Obama plans to outline in a speech at a Veterans of Foreign Wars convention in Pittsburgh, will put an interest rate cap of 36 percent on more types of loans, including payday loans and loans on vehicle titles.

“When I drive down a strip outside a military installation and count 20 fast-cash lenders in a few miles, that’s not a convenience, that’s a problem,” said Holly Petraeus, assistant director of service member affairs at the Consumer Financial Protection Bureau, which will work with regulators to enforce the rules.

The rules announced Tuesday are intended to strengthen the Military Lending Act. It’s been criticized by some lenders and Republican lawmakers, who say it will have the unintended effect of cutting off access to loans for military members.

Obama will speak on the five-year anniversary of the Dodd- Frank legislation, which created the CFPB.

The new rules apply to more loans than the 2006 law, which targeted payday lending by capping interest rates on loans for $2,000 or less that had repayment terms of no more than three months. The new rules lift the limit on loan size and length.

Brad Carson, acting under secretary of defense for personnel and readiness, said he’s heard of loans to service members with interest rates of 600 to 700 percent. When their credit suffers, service members can be kicked out of the armed forces, hurting military readiness, he told reporters Monday.

In his remarks Tuesday, Obama also plans to talk about last week’s fatal shootings at military recruiting facilities in Chattanooga, pitch the Iran nuclear deal he’s presenting to Congress and talk about steps taken to improve health care provided through the Department of Veterans Affairs.

© Copyright 2017 Bloomberg News. All rights reserved.

   
1Like our page
2Share
Personal-Finance
President Barack Obama Tuesday will announce final rules extending limits on the rates that can be charged for some loans to members of the armed forces, taking aim at what the White House says are predatory lenders who line the roads outside many military installations.
Obama, loans, military, rules
329
2015-42-21
Tuesday, 21 Jul 2015 07:42 AM
Newsmax Inc.
 

Newsmax, Moneynews, Newsmax Health, and Independent. American. are registered trademarks of Newsmax Media, Inc. Newsmax TV, and Newsmax World are trademarks of Newsmax Media, Inc.

NEWSMAX.COM
MONEYNEWS.COM
© Newsmax Media, Inc.
All Rights Reserved