This is horrible that they prey on those who serve to protect them.
Service members are supposed to be protected from predatory lenders thanks to the Military Lending Act (MLA) in place for several years.
However, a joint investigation by Marketplace and ProPublica found that while the act did reduce the number of “payday loan” problems, the law does not regulate loans that extend beyond three months.
The MLA did little to regulate open-ended credit, or military installment loans longer than 91 days. Those are still available to service members, and in some cases aggressively sold to them. Some payday and title lenders have found ways to exploit gaps in the MLA, offering longer-term high-interest installment loans, sometimes backed by a car-title, that are not illegal but can send service members into a deepening spiral of debt.
Financial troubles are considered a serious threat to force readiness according to the Department of Defense.
At issue now, according to the report, are short-term high-interest…
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