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Military, Financial-Service Communities Act to Curb Predatory Lending Practices Young men and women in the U.S. military have become prey to modern loan sharks – payday lenders who surround bases and trap service members in dangerous cycles of debt. Last month, the California Assembly passed with a vote of 71 to 1 AB 1965, a bill with limited protections for military personnel from payday lenders. In its current form, AB 1965 does not cap the interest rate on payday loans below the current State rate of 459 percent. In contrast, the U.S. Senate recently passed with strong bipartisan support an amendment to the Defense Authorization bill that would cap the interest rate for all forms of credit to active duty military personnel at 36 percent APR, including all fees and service charges. The Chamber joins local military officials, credit union and bank representatives and consumer advocates in their concern about payday lending and its negative effects on military personnel. These groups are unified in urging California lawmakers to amend AB 1965 to include a 36 percent cap on payday loan interest rates. An amendment capping interest rates would help curb a practice the Defense Department has identified as one of 10 "key issues" affecting the quality of life of Service members and their families. "California has some of the weakest laws in the country on predatory lending, and payday lenders take advantage of that," said Scott Alevy, vice president of public policy and communications for the Chamber. "We're seeing rates of 460 percent, and this hurts military families struggling to make ends meet. It can also affect the ability of military personnel to keep a security clearance." Active-duty military personnel are three times more likely than civilians to take out payday loans for several reasons. Young service members often have limited financial experience, they have families with young children – and lots of unexpected expenses – and they're frequently stationed away from their family support networks. It's no accident that the highest concentration of payday lenders in the state surrounds Camp Pendleton. "Predatory lending practices represent a real and growing threat to the military readiness of our Navy men and women stationed in California," said Rear Admiral Len Hering, who represents all Navy bases in California as Commander, Navy Region Southwest. "Ultra-easy credit, no verification of ability to repay, single ballooning payments due in two weeks, triple digit interest rates and aggressive marketing trap our sailors into cycles of debt they cannot escape on their own." For the rest of the story click here |
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A Luncheon with U.S. Senator Dianne Feinstein  This is an excellent opportunity for the business community to interact
with the Senator and network with other concerned business people. Senator Feinstein will present a "Washington Report" an update on what she is working on in D.C. and discuss other current issues that affect the California and the
nation. There will be an opportunity for questions and answers at the conclusion of her presentation. When: Monday, Aug. 21, 11:30 - 1:30 p.m. Where: Holiday Inn on the Bay, 1355 North Harbor Dr. Cost: $45 Chamber Members, $55 Non Members, $425 Table of 10 For more information visit www.sdchamber.org. |
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Thank You to our
Renewing Members Chamber Press Releases Hot off the press |
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Members in Action Announcements, awards and more! Chairwoman's Report News from the Chamber Board |
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Your Business Advocate Leveraging its robust membership, collaborations with other organizations and political access, the San Diego Regional Chamber of Commerce's business advocacy team initiates legislation and lobbies for policies that create a stronger pro-business environment. |