Payday Loans and Soldiers
Payday loan companies came under attack following a Department of Defense report arguing that the prominence of payday lending among U.S. servicemen and women was compromising U.S. military readiness and troop morale, and that payday lenders were specifically targeting U.S. military personnel. The CFSA disputed the Department of Defense findings, arguing it was based only on the research of payday lending opponents. As a response to these and other charges, the CFSA initiated a US$10 million education and advertising campaign it claimed would help inform borrowers and improve the lending practices of its members. The CFSA hired Eric Dezenhall, a public relations specialist, to improve its image. In 2007, the DoD created new regulations that fixed interest 3 classes of short term loans, including payday loans, to military members at a maximum of 36% APR. TLW
Read more about this topic: Community Financial Services Association Of America, Controversy
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