No Carve-Outs Allowed
Should credit card companies be allowed to charge American service men and women higher interest rates than other lenders? The Pentagon seems to think so. Even though a recently passed law restricts interest rates charged to military personnel and their families by all lenders to 36%, DOD is trying to create a loophole for credit card companies.
A Federal Register notice stated that the Department of Defense “views this requirement as an opportunity to ensure the protections included in the statute do not create unintended limitations on Service members and their families obtaining favorable credit products.” Organizations dedicated to supporting the Military oppose any shenanigans that would deny service members the full legal protections set by Congress.
The Military Coalition, a group of over thirty military organizations including the VFW, the Non-Commissioned Officers Association and the Military Officers Association, sent a joint letter to the Pentagon urging them to “deliver on the promises of the new law” by applying the rate cap and other protections “to all lenders and lending institutions.” CRE has written a legal memo explaining in detail why the Pentagon is required by law to apply the interest rate cap to all lenders including credit card companies.
The Military protects all Americans. The Pentagon needs – and is required by law – to protect the Military by applying the new interest rate regulation to all lenders without exception.
See CRE Memorandum of Law
See The Military Coalition comments
