Legal Assistance: The John Warner National Defense Authorization Act for Fiscal Year 2007 and Protecting Soldiers Against Predatory Lending

Private Smith, planning to repay the loan with his next paycheck, cannot repay the loan and is forced to renew the loan or extend the period for repayment. As customary, the lender allows up to four fifteenday extensions for $60 each, for a total of $240 in fees. Private Smith repays the loan after...

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Bibliographic Details
Published inThe Army Lawyer p. 30
Main Author Gordon, Jason M
Format Trade Publication Article
LanguageEnglish
Published Charlottesville Superintendent of Documents 01.04.2008
Subjects
Armed forces
Attorneys
Defense
Federal regulation
Fiscal years
Legal aid
Military personnel
Predatory lending
Refund anticipation loans
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Summary:Private Smith, planning to repay the loan with his next paycheck, cannot repay the loan and is forced to renew the loan or extend the period for repayment. As customary, the lender allows up to four fifteenday extensions for $60 each, for a total of $240 in fees. Private Smith repays the loan after sixty days along with $240 in fees at an astronomical 487% annual percentage rate. This payment drives Private Smith further into debt and his financial situation becomes dire.
ISSN:0364-1287
1554-9011