Anti-predatory Lending Rule Published

The Defense Department has responded to an anti-predatory lending law passed last year by drafting a rule for publication in the U.S. Federal Register. The rule proposes curbs on predatory practices involving payday loans, car title loans and tax refund anticipation loans made to service members and their families. Interest rates and fees for such loans would be capped at 36 percent. The rule does not cover credit cards, home mortgages, lines of credit, or automobile loans. Predatory lending draws troops and their families into a morass of debt that can affect readiness and has caused several thousand service members to lose their security clearances, according to DoD officials. The proposal in the Federal Register allows for a 60-day comment period.