The Consumer Financial Protection Bureau (CFPB) is looking into payday loan lenders at the federal level. This is a new event as payday lenders have not been regulated at the federal level. The CFPB set new rules in September 2013 to ensure payday lenders complied with the Military Lending Act of 2007.
Many of the payday loans made to military personnel have finance charges of $15 to $20 for each $100 borrowed. A typical two week loan term can equal an annual percentage rate of 391% to 521% interest. A Defense Department study concluded these predatory lending practices constituted a genuine threat to the welfare of military personnel and their family.
This is also true for civilians. Payday loans or cash advances represent a genuine threat to consumers. With sky high interest rates many consumers will have an extremely difficult time paying back these loans. If you are struggling with payday loans contact a qualified debt settlement attorney. A qualified debt settlement attorney can do battle against these aggressive lenders and settle these predatory loans.
Kevin Fallon McCarthy
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