San Diego, CA - The newly proposed legislation called the Servicemembers Anti-Predatory Lending Protection Act - will amend, when passed and signed into law, the Servicemembers Civil Relief Act. The purpose of Servicemembers Anti-Predatory Lending Protection Act is to set forth terms for consumer credit extended to a servicemember or servicemember's dependent, including terms of interest with respect to the extension of such credit.

The Servicemembers Anti-Predatory Lending Protection Act would prohibit a creditor from imposing an annual percentage rate greater than 36 percent with respect to the consumer credit extended. The proposed law would set forth mandatory loan disclosures, including:
(1) a statement of the annual percentage rate applicable to the extension of credit; and
(2) a clear description of the payment obligations.

Servicemembers Anti-Predatory Lending Protection Act would also prohibits a creditor from automatically renewing, repaying, refinancing, or consolidating any consumer credit with the proceeds
of other credit extended to a servicemember or a servicemember's dependent by the same creditor without:
(1) executing new loan documentation signed by the servicemember; and
(2) providing the mandatory loan disclosures.

The Servicemembers Anti-Predatory Lending Protection Act would preempt any State or Federal law, rule, or regulation, including any State usury law, to the extent that it is inconsistent with this Act. It also states that this Act does not preempt any such law, rule, or regulation that provides additional protection and prescribes criminal penalties for violation of this Act.
The Servicemembers Anti-Predatory Lending Protection Act was introduced in the U. S. House of Representatives in Washington, D. C. by Honorable Sam Graves of Missouri. Graves Pushes to Cap High Interest Rate Loans to Soldiers Congressman Works on Legislation To Ease Troop's Financial Burden (Washington, D.C) U.S. Congressman Sam Graves announced legislation to protect service members from dangerous predatory lending practices. The legislation, H.R. 97 has been referred to the Committee on Veteran's Affairs. Graves said he thought loan rates should be the last thing on soldiers' minds. "America's soldiers defend our freedom overseas," said Graves. "I do not think they should be taken advantage of at home."

A recent analysis of credit industry studies found that 26% of Military households have done business with high cost instant lenders. Those same soldiers are often then forced to continue taking out loans with higher and higher Annual Percentage Rates (APR) that make it impossible for the original loan to ever be repaid. The average APR for a pay day loan is 300%. Graves' legislation would cap the APR for soldiers taking out pay day loans at 36%. The legislation though only covers service members and does not affect non-military loans. Graves says he believes we can do better for our troops. "These businesses are geared toward and targeting our soldiers," said Graves. "Our men and women in uniform should not be treated like a niche market; we depend on them for our freedom and owe
them our gratitude."

Graves also is the lead co-sponsor on bi-partisan legislation aimed at erasing the pay gap for National Guard soldiers sponsored by Representative Tom Lantos of California. This legislation rewards employers who pay their activated employees the difference between their civilian and military salary while they are on-duty. It provides a tax credit of 50% for up to $30,000 of the costs incurred by the
employer.

"I don't believe that our men and women of the National Guard should take a pay cut for serving their country, said Graves. "I think we should encourage companies to eliminate this pay gap so that activated reservists are not financially penalized." According to the General Accounting Office, over 40 percent of reservists members deploying to Iraq and Afghanistan have taken a pay cut to serve their country. Currently there are 158,000 reservists and Guard on active duty.

Honorable Sam Graves
U. S. House of Representatives
1513 Longworth House Office Building
Washington, D. C. 20515.