Archive for the ‘Military Payday Loans’ Category

Military Payday Loans – New Rules Planned for Fort Hood

Following the Pentagons Friday announcement of stricter rules coming for payday loan and other companies who prey on soldiers, Fort Hood officials are waiting for further guidance from Defense Department and Army leaders, while others say a stronger policy will prevent loopholes in the current law.

Fort Hood awaits new rules about military payday loans 

by Jacob Brooks

Following the Pentagons Friday announcement of stricter rules coming for payday loan and other companies who prey on soldiers, Fort Hood officials are waiting for further guidance from Defense Department and Army leaders, while others say a stronger policy will prevent loopholes in the current law.

We are aware of the proposed rules change to the Military Lending Acts limits on interest rates for certain types of credit service members can apply for, Fort Hood officials said in a statement Monday. We are waiting on further guidance from DOD and the Army on how this will affect our soldiers. Additionally, Fort Hoods Financial Readiness Branch strives to educate our soldiers on the importance of financial readiness and welcomes laws that can further benefit their financial well-being.

Fort Hood officials directed further questions to the Pentagon.

Under current law, lenders cannot charge members of the military more than 36 percent interest. But the loans covered by the law are so narrowly defined that lenders, many of them located near military installations, can make simple adjustments to get around their provisions.

The proposed rules would broaden the definition of consumer credit so that more loans would fall under the provisions of the 2006 law. Final rules likely wont take effect until next year; the public and interest groups have 60 days to comment on the plan.

Currently, transactions covered by the 36 percent cap on interest are limited to payday loans of $2,000 or less with terms of no more than 91 days, loans that are secured by a personal vehicle with terms of no more than 181 days, and tax refund anticipation loans.

But the Consumer Financial Protection Bureau and the Pentagon have found that in some cases lenders slightly altered the loans, adding $1 to the loan or one day to the terms to bypass the interest cap.

At least eight payday loan companies some with multiple branches were listed on the Better Business Bureau website Monday operating in Killeen, Harker Heights and Copperas Cove. According to a BBB representative, none of the local branches had a F rating the BBBs worst possible rating. However, some parent companies, which are typically headquartered elsewhere, did.

For example, Atlanta-based Community Loans of America, Inc, which operates Killeens Fast Auto And Payday Loans Inc., has an F rating, according to the BBB.

Aside from the law that puts a cap on interest rates, Army Emergency Relief helps soldiers who may be considering a payday-type loan. AER provides no-interest loans and grants for emergency travel, initial rent deposits and vehicle repairs.

AER also provides financial support for household and appliance repair, dependent dental care and initial home furnishings. According to an article published Jan. 8 in the Fort Hood Herald, AER provided about $6.4 million in AER assistance to Fort Hood soldiers and families in 2012.

Belton resident Louie Minor, an Army Reserve captain who is a Democrat running against longtime Congressman John Carter, R-Round Rock, said more is needed to protect soldiers from lenders who exploit loopholes.

These expanded protections are a step in the right direction to help our military service members, Minor said in an email to the Herald on Monday. Predatory lenders were able to exploit loopholes … in excess of $80 million in fees every year according to the Center for Responsible Lending.

In responses to an advance notice of the Pentagons proposal last year, financial industry representatives warned the changes could reduce the availability of short-term credit for service members.

We want to ensure that there are no unintended consequences from this rulemaking that would prevent credit unions, particularly those operating on military installations, from providing the safe consumer friendly products the men and women of the armed services have come to depend on, Carrie Hunt, senior vice president at the National Association of Federal Credit Unions, said in a statement.

The Pentagon estimates the first-year cost to lenders of complying with the new rules would be $96 million, but officials said that figure would be exceeded by the potential savings from reducing the number of service members who leave the military due to financial distress.

The Associated Press contributed to this report.

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Military Payday Loans Will Provide Quick Cash for Deserving Families

Military personnel, engaged as they are in day-to-day security matters of the country, have little time to devote to their pecuniary needs that arise from many works done in a family every other day. Military payday loans are designed to meet any emergency cash requirement of military personnel between paydays. That is why one attractive feature of military payday loans is instant availability. With the employment status and income of military personnel known already, it takes no time in processing of the military payday loans application.

The variation is express simple. The military person pursual the loan offers a fixed assignment – dated grant of his required amount including the reinforcement price to the lender. The lender then issues military person the check of the borrowed amount nearest deducting his fee. The lender draws pack his loaned cost from the borrower’s report on due turnout by encasing the check.

Among other payday loans, military payday loans are attractive right away as the lenders do not have to acquit activity or income details of military personnel. Overnight, the required equivalent comes to account of military personnel.

Cash Cow Advances military payday loans can help military families gain quick cash during those times when they need it the most. Apply for military payday loans online and get the cash you deserve.

Under military payday loans, know onions is no demand for military personnel to put any collateral with the lender. The lender already has secured his loaned money in the form of the post – dated concede that he received from the borrower while lending the loan. He draws lug his loaned amount by cashing the grant from borrowers account.

Military personal responsibility favor military payday loans in the range of £500 to £1000 depending on the salary they draw and the amount they have in their account. It is always advantageous if military personnel keep enough green stuff in their report so that they do not have to base any collateral with the lender in plight they need a worthier amount to borrow.

Military Payday Loans are Readily Available

Military payday loans are available easily, but sweat should be taken about the lenders service fee. Major fee may manifest to be a collectible affair thanks to military personnel who normally do not allow any item business or income. Some lenders provide” free’’ loans in which case the lender waives the hand fee.

But the borrower has to pay the loaned price lug on the due parley fault which the lender will thrust benefit price. In order to sway the loan at lower undeveloped payment, military individuals must prospect for the fee that is fictional available by a number of lenders online. Compare these fees and pile up the one that matches well with your converse or income.

Again haul defense that the post – dated check you issue to the lender does not bounce; diverse the lender may tiring you to court. So never go over for more expense than you have in your tally.

Military payday loans are obtained easily ease but make sure that they don’t habit into a burden, Take the loan only up to an equivalent you can remuneration back on time.

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