We saw another article (from The Motley Fool) come through touting FINRA’s “recent” study that was conducted in 2009 (two years after the Talent Amendment went into law—a bill that made traditional payday lending to military personnel and families virtually non-existent).

The stat: Nearly one in three enlisted personnel or junior NCOs had used payday loans, auto-title loans, or other risky borrowing practices in the previous five years.

The reality: First and foremost, CFSA member companies do not market or provide two-week payday advance loans to the military.

Military personnel today rely on automobile title loans, installment loans, and online military loans for short-term credit needs. Unfortunately, reporters and public officials don’t make the necessary distinction among lenders and categorize all short-term loans to military personnel as “payday loans” which they are not.

The Defense Reauthorization Act of 2006 imposed a 36 percent rate cap on all loans to the military of less than 90 days. Lenders that provide loans that exceed 90 days are free to charge higher interest rates and they do. For example, Pioneer Services, a division of MidCountry Bank makes loans to the military for debt consolidation, automobiles, bad credit, and personal needs at interest rates and fees that add up to triple-digit APRs.