What, military ban didn’t work?
April 23, 2010 | alternatives, federal legislation, industry | Comments (0)From the Army Times:
A couple of years after Congress passed a law to crack down on payday lenders, it turns out banks are still offering products that skirt the law.
The only difference: The banks say their loans are legal.
Wells Fargo and U.S. Bank, the two banks in the game, offer “payday advances” — renewable loans of up to 35 days that look every bit like a payday loan except they don’t violate the Defense Department’s narrow implementation of the Military Lending Act of 2007, which caps the interest rate on payday loans at 36 percent.
These “payday advances” are far more pricey: The annual percentage rate is 120 percent if the money is repaid within a month, and 261 percent if repaid within 14 days.
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