Congresswoman Duckworth Leads Effort to Protect Service Members from High-Cost Loans

Statement

Today, Congresswoman Tammy Duckworth was joined by 53 colleagues in urging Secretary of Defense Chuck Hagel to create more comprehensive protections that will support our Service Members. Currently, the Department of Defense is reviewing the definition of credit loans under the Military Lending Act that are subject to a maximum of a 36 percent interest rate. The group, led by Duckworth, is calling for a more inclusive definition that ensures that Service Members are protected from all forms of short-term, high-interest loan agreements -- such as predatory payday loans, vehicle title loans, and refund anticipation loans.

"Under current law, Service Members are vulnerable to harmful loan practices that circumvent the Department of Defense's current regulations on the Military Lending Act. This process discriminates against those who work every day to defend our nation; they deserve the strongest protections our government can provide. I urge the Department of Defense to take advantage of the opportunity they have to expand the narrow definition of consumer credit protection under the Military Lending Act and stamp out the negative lending practices that threaten the financial stability of our Service Men and Women" Congresswoman Duckworth said.

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