Kildee introduces bill to protect service members from predatory - ABC 12 – WJRT – Flint, MI

Kildee introduces bill to protect service members from predatory lenders

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WASHINGTON, D.C. (WJRT) -

(12/10/13) - A local lawmaker says some service men and women who are taking out loans to try and get back on their feet are being suckered into bad deals.

We're talking about short-term pay day loans or auto title loans that service members might have to take out to get through a rough patch.

Mid-Michigan Rep. Dan Kildee says predatory lenders are taking advantage of our men and women in uniform. He cites one case where a service member wound up paying $17,000 on a $1,600 loan.

So he's introducing the Transparency in Military Lending Act.  The bill would require lenders to provide service members documentation showing the true cost of the loan and a repayment timetable. Also, that other lenders may offer loans at a lower or zero interest rates, and that financial counseling services are available through the Department of Defense.

"All this does is require lenders to be straight with military personnel when they're entering into these sorts of loans. And you know what? This is the least we can do for our service members who put their lives at risk. We can't put them in a position where unscrupulous lenders can take advantage of them," said Kildee.

Kildee says his bill won't cost taxpayers money or add to the deficit. This is the fourth bill he's introduced since taking office in January.
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