Opponents of payday lending quickly gained an ally that is prominent Holly Petraeus, wife of resigned Army Gen. David Petraeus, now the CIA manager.
In 2006, the Department of Defense described lenders as вЂњpredatoryвЂќ and a risk to security that is national. Payday lending вЂњundermines army readiness, harms the morale of troops and their loved ones, and enhances the price of fielding an all-volunteer combat force,вЂќ the division reported, noting that solution users had been two times as prone to fall victim as civilians.
Congress passed a legislation interest that is capping at 36 % on pay day loans meant to U.S. armed forces people and their own families вЂ“ limitations that drove loan providers to more fertile markets.
In the past few years, states from Maine to Arizona enacted caps that are similar legislation and ballot initiatives.