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State Measure Would Control Payday Advances to Military Staff

State Measure Would Control Payday Advances to Military Staff

Controversial pay day loans targeting soldiers going back from Iraq are actually when you look at the crosshairs of politicians.

Assemblyman installment loans Virginia online Ted Lieu, a Torrance Democrat, introduced a bill, AB7, that could tighten up state enforcement of 36-percent yearly rate of interest caps on loans to armed forces workers and their own families, in keeping with recent guidelines by the Department of Defense.

Lieu is just a reservist when you look at the Navy’s Judge Advocate General corps and it is knowledgeable about the problem having been both a prosecutor and a protection attorney in situations involving armed forces debtors, who face charges far stiffer than foreclosures, repossessions or dings on credit file. Under armed forces legislation failure to cover debts is recognized as a crime, and when workers are faced with it they can not be implemented and could even face release.