Congress is screwing the soldiers, again! Wave the flag and hail the troops, then knife them in the back in exchange of corporate money for Congress from their corporate bed buddies!
The military has been grappling with the financial impact of predatory lending on service members for years. In 2006, Congress passed legislation cracking down on some forms of high-interest credit, particularly payday lending. Lenders responded by exploiting loopholes in the law, and late last year, the Department of Defense proposed a new set of regulations designed to curb these creative workarounds that target troops.
Republicans have been working to kill those regulations before they can take effect. This week, Rep. Steve Stivers (R-Ohio) will offer legislation that would block DOD from finalizing its rules until a host of unrealistic technical certifications could be made for a database of active-duty military members. The House will vote on Stivers’ plan as an amendment to the National Defense Authorization Act, a major bill that establishes military funding.
Thousands of service members receive short-term, high-interest loans each year, according to a 2014 report by the Consumer Financial Protection Bureau, which has documented a raft of abusive tactics targeting soldiers and their families. One family that took out a $2,600 loan ended up paying back $3,966.84 over the course of a year. Another borrower spent $1,428.28 to pay off a $485 loan in just six months.
Stivers has been one of the payday lending industry’s favorite members of Congress since he took office in 2011. Over the 2012 and 2014 election cycles, payday loan companies contributed $69,625 to his campaign, according to data from the Center for Responsive Politics.