http://deseretnews.com/article/1,5143,695214983,00.html
Utah payday lenders began refusing Monday to make loans to members of the military rather than give them much lower rates mandated by a new federal law.
That new law, which took effect Monday, caps the annual interest on payday, car title or tax refund anticipation loans at 36 percent annually for members of the military and their families. A 2005 Deseret Morning News series found payday loans here averaged a whopping 521 percent interest, and car title loans averaged 300 percent.
2007-10-02 06:03:39 · 5 answers · asked by Anonymous in Politics & Government ➔ Military
I think the point is moot anyway. Military personnel should NEVER get a payday or title. loan. With AF Aid and family support there is no reason to use them! They can help with anything a member truly needs.. money for car repairs, what ever i NECCESSARY. Where we are stationed Active Duty personnel are barred from using such services. If you can't afford to buy something today, you won't be able to afford it tomorrow either. If you can't wait until payday, then you don't need it anyway!
2007-10-02 09:32:29 · answer #1 · answered by mustangsally76 7 · 2⤊ 0⤋
"At 36 percent annual percent rate, the total fees we could charge are $1.38 per $100 for a two-week loan. That is less than 10 cents a day," Walker said.
Payday loans are a BAD financial move.
2007-10-02 13:13:20 · answer #2 · answered by davidmi711 7 · 6⤊ 0⤋
I think 36% is greedy. Payday loans should be used as a last resort because they often become a trap due to their large interest rates.
2007-10-02 13:37:27 · answer #3 · answered by Ken Y 2 · 4⤊ 0⤋
It used to be that 10% was considered usury. And it is, but most places it isn't illegal any more.
2007-10-02 13:27:28 · answer #4 · answered by ? 4 · 5⤊ 0⤋
When the chances are that the loan won't be repaid!
2007-10-02 13:12:06 · answer #5 · answered by Wounded Duck 7 · 0⤊ 7⤋