Question:

Is the Servicemembers Anti-Predatory Lending Protection Act going to curb military predatory lending?

Answer:

The Servicemembers Anti-Predatory Lending Protection Act limits the APR to 36%, demands greater term disclosure and limits automatic roll-overs.

How is military personnel affected by predatory lending?

Financial education for military members has been sought to increase, but given that 40% of servicemembers are below 25 years of age, they are not versed in financial matters and are an easy prey to predatory lenders. Since financial stress limits the ability of servicemembers to perform successfully their duties, the Departmemt of Defense has taken upon itself to help reduce stress based on financial matters among the military through the Servicemembers Anti-Predatory Lending Protection Act.

Lending Regulations to Curb Predatory Lending among the Military

  • Lenders cannot change a loan terms unless they result in more favorable terms for the borrower.
  • Borrower's right to legal recourse cannot be waived.
  • Payment obligation has to be clearly described.

Although the usefulness of the Servicemembers Anti-Predatory Lending Protection Act is undeniable, it is not only servicemembers who need better consumer protection and clearer lending rules. The average consumer could certainly benefit from better financial education and greater predatory lending protection.

Mortgage rates hit their lowest since 1955. Ask the home loan experts we recommend Quicken Loans how to take advantage of them.
Was this Mortgage QnA helpful?
Not at all
  • Currently 3/5 Stars
  • 1
  • 2
  • 3
  • 4
  • 5
Definitely
Add to this Answer

Mortgage QnA is not a common forum. We have special rules:

  • Post no questions here. To ask a question, click the Ask a Question link
  • We will not publish answers that include any form of advertising
  • Add your answer only if it will contrubute to the quality of this Mortgage QnA and help future readers
If you have trouble reading the code, click on the code itself to generate a new random code. Verification Code Above:
Bookmark and share this QnA: