Troops Still Suffer at the Hand of Predatory Lenders

Five years after the Pentagon highlighted the problems payday lenders inflict on service members and their families, military personnel are still getting in financial trouble as a result of predatory lending, reports DailyFinance.com.

Congress limited lenders to charging 36 percent interest on certain types of loans, but the industry has found ways to skirt the rules. As a result, the military has increased its efforts to educate service members about the issue, and also established a program, Military Saves, encouraging financial planning.

One step that could make a difference is the Treasury Department’s hiring earlier this year of Holly Petraeus, wife of Army Gen. David Petraeus, to head up the office of servicemember affairs in the newly created Consumer Financial Protection Bureau.

Dan Cohen
Dan Cohen
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