Want to Honor Vets? Stop Gouging Them With Payday Loans

California Advocates Suggest California Members of Congress and California State Legislature Could Honor Veterans By Strengthening Protections Against Predatory Payday Loans

Veterans and Loan Sharks

The California Reinvestment Coalition and the Center for Responsible Lending issued a call today, urging state and federal lawmakers to consider strengthening protections for veterans and their families.  Earlier this year, the Department of Defense released proposed rules to update enforcement of the Military Lending Act, which was passed in 2007.  An update is necessary because of shady lenders exploiting loopholes in the 2007 law.  With more than 1.8 million veterans, California is home to the nation’s largest number of veterans. California also has the nation’s largest active duty military population—over 160,000 service members.

The vicious cycle of debt is not a side effect of payday lending it is the business model. A Center for Responsible Lending analysis shows that California payday lenders, who advertise their products as a one-time quick fix for consumers facing a cash crunch, generate 76% of their revenue from borrowers who take out 7 or more loans per year. A map of California payday lending locations shows the lenders cluster in low-income communities.

Also, have you heard about the upcoming CFPB rulemaking on payday loans?  We need all hands on deck to make sure the process results in strong rules that protect consumers—not payday lenders!  Sign our petition to the CFPB and we’ll also let you know when the public comment period opens and if there are upcoming advocacy opportunities:  Payday Loan Petition to Richard Cordray

And, if you’re interested in learning more about payday loans and the harms they cause, check out a few of our most popular posts from earlier this year:

1) EDITORIALS AGAINST PAYDAY LENDERS

2) SEVEN IMPORTANT UPDATES ON PAYDAY LENDING IN CALIFORNIA AND NATIONALLY

3) CAREFUL! ALTERNATIVES TO PAYDAY LOANS CAN ALSO BE PREDATORY

4) THE PAYDAY LENDER HALL OF SHAME

To stay up to date on financial justice issues in California, especially as they relate to low income communities, and communities of color, you can follow the California Reinvestment Coalition on our Facebook page, via TwitterGoogle+, watch our movies on our YouTube Channelsign up to receive our newsletter and action alerts, and of course, visit our website.

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