The Senate version of the fiscal 2007 defense authorization bill has a provision to cap interest rates and fees for loans to service members and their dependents at 36 percent. This would curb current predatory lending practices that can hit members (generally junior enlisted) with interest rates and fees as high as 500 percent (see next item). The house version of the authorization bill carries no provision, so any resolution will depend upon a joint conference committee. A Defense Department report sent to Congress August 10, 2006, says that a large number of service members are caught in abusive lending schemes, which reduce their job effectiveness and their deployment readiness. The report outlines measures DoD has taken to protect members from predatory lending, but says that legislation is needed to rein in the practice. The report is at http://www.usa4militaryfamilies.dod.mil/dav/lsn/LSN/BINARY_RESOURCE/BINARY_CONTENT/2141721.pdf.