Holly Petraeus
“The way I read that is you are not going to make a… payday loan to a service member on active duty, or their family.”
Better Business Bureau’s Military Line consultant Holly Petraeus believes that the National Defense Authorization Act for Fiscal Year 2007 effectively bans payday loans to military members…
The Act caps interest rates at 36% APR and prohibits lenders from using a check or other access to a deposit, savings or other financial account as security for a loan.
Petraeus said that payday loans create “an appetite for easy money” and can lead to a cycle of borrowing:
“If you didn’t have $200 today, you are not going to have $200 extra in two weeks to pay it back.”
Holly Petraeus is the Senior Program Consultant for the Better Business Bureau’s Military Line and a military family member.
Source: Financial Defense – Payday Lenders Target Military, Families by Tisha Johnson (Leavenworth Lamp)
If you are a member of the armed forces, please read Interest Free Loans for Military Personnel in our Payday Loan Alternatives category or Financial Resources for Military Personnel in our Links section.
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