Servicemembers Anti-Predatory Lending Protection Act Introduced in Congress.
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Servicemembers Anti-Predatory Lending Protection Act Introduced in Congress.

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.
 

About the ICFE:

The Institute of Consumer Financial Education (ICFE) was founded in 1982 by the late Loren Dunton (creator of the Certified Financial Planner (CFP) designation).  The ICFE is dedicated to helping consumers of all ages to improve their spending, increase savings and use credit more wisely. 
The ICFE is an award winning, nonprofit, consumer education organization that has helped millions of people through its education programs and Resources. It publishes the Do-It-Yourself Credit File correction Guide, which is updated annually. The ICFE has distributed over one million Credit/Debit Card Warning Labels and Credit/Debit Card Sleeves world wide.

The ICFE became an official partner with the Department of Defense/Financial Readiness Campaign in June of 2004.The ICFE was an active partner in the California Student Debt Resource Awareness Project (CASDRAP) which resulted in a new web site: (studentdebthelp.org).  CASDRAP disbanded in 2010, shortly after the web site project was completed.  In 2011 the ICFE assumed the single sponsorship of the (studentdebthelp.org) web site and is now responsible for its content and operation.

The ICFE is also an on-line help for consumers who spend too much.  ICFE's spending help was featured in PARADE Magazine in the Intelligence Report section. The money helps and tips are from the ICFE's Money Instruction Book, our course in personal finance.

Visit the ICFE's other web sites at: www.financial-education-icfe.org and studentdebthelp.org.  Both sites helps consumers and students with mending spending, learning about the proper use of credit, budget and expense guidelines, how to set up and implement a spending-plan and also how to access financial education courses and how to teach children about money. Other ICFE services include: Ask Mr. G,  a free eNews, and an online resource center for students, parents and educators, plus financial education learning tools and a book store.

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