Payday Measures Too Weak, Fail
A recent measure to curb payday-loan industry practices that target the military collapsed in the Legislature after some key backers shunned its weakened form. An Oceanside state senator who served in the Marines also refused pleas by Camp Pendleton officers to support a crackdown. So, while senators battle out their differences, they seem to have forgotten the fact that military families are still left unprotected. The push for the bill was bolstered by examples of troops paying as much as 400 percent interest on loans.
So what exactly happened for the legislators to oppose the bill? For one, the interest rate cap of 36 percent was eliminated. This made some initial supporters back off. The protections offered in the bill were not sufficient for the military. And there is also the fact that passing something weaker in California would undermine efforts to get stronger protections in Washington. Signonsandiego.com reports:
In Washington, Congress is considering imposing a 36 percent interest rate cap as part of a broad Department of Defense Appropriations measure. Final action is scheduled this month.
Read more: Weakened payday-loan measure fails
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