The federal Department of Defense (DOD) is considering whether to expand loan protections available to members of the military. Recent legislation requires DOD to review its regulations implementing the Military Lending Act of 2006. In implementing that law, DOD set rules for payday loans, vehicle title loans, and tax refund anticipation loans, including limiting interest rates to no more than 36%.
Comments from consumer advocates in response to DOD’s request for input on the existing rules call for protections covering a broader range of payday loans, overdraft checking, installment loans, and rent-to-own contracts.
This comment period recently ended and DOD officials stated they intend to develop a proposed rule by the end of the year.
For more information, see an article in the Marine Times.
