California reinforces predatory lending lawBy Gidget Fuentes - Staff writer
Posted : Thursday Oct 11, 2007 11:13:39 EDT
CAMP PENDLETON, Calif. — A newly signed California state law that took effect Tuesday gives teeth to federal legislation capping the interest charged by payday lenders and other so-called “predatory” financial businesses that target service members, military and state officials said.
A new federal law that took effect Oct. 1 caps short-term “payday” loans given to service members and their dependents at 36 percent annual interest. Enforcement is uncertain, however.The predatory lending bill is one of nine new pieces of military-related legislation that Schwarzenegger signed Tuesday.
“Taken together, these bills … provide important benefits for California’s veterans and military personnel and
how much we appreciate their service and their sacrifice,” Army Maj. Gen. William Wade II, California’s adjutant general, said during a press conference at Camp Pendleton. “We are ensuring the financial health of our men and women who wear our uniforms every day.”
Another new law, Assembly Bill 950, extends to two years the period of state residency for service members on active duty who are not California residents so they can pay in-state, instead of out-of-state tuition and fees, enabling more to qualify. “We found out that a lot of the young men and women on military bases didn’t realize they had access to in-state tuition when they were right here assigned to California,” Johnson said.
California’s payday loan law parallels the federal law and, in effect, enables the state to enforce the cap and take action against companies that break the law, officials said.
Rest of article at: http://www.armytimes.com/news/2007/10/military_california_paydayloanlaw_071011/
uhc comment: It's nice that loans to soldiers are capped at 36 percent. :sarcasm:
Printer-friendly format
Email this thread to a friend
Bookmark this thread
(1000+ posts)
Send PM |
Profile |
Ignore
