Going After Payday Lenders Who Prey on Troops

The federal Consumer Financial Protection Bureau has proposed rules to crack down on the predatory loan practices of payday lenders that ensnare thousands of service members and their families in spiraling debt. Under the new rules, "lenders making short-term loans would be required to check upfront whether the borrower can afford to pay the full amount of the payment when it comes due, without needing to re-borrow," said Richard Cordray, the agency's director. "Specifically, lenders would need to verify the borrower's income, borrowing history, and certain key obligations," Cordray said at a hearing in Kansas City with victims of payday loan rollovers at interest rates that can top 390 percent. For more details, see this Military.com article.