Is there a special law that protects military personnel from high-cost lending?
Yes, but the law does not go into effect until October 1, 2007. In 2006, Congress capped the interest rate on loans made to military personnel and their dependants at 36% (except for residential mortgages and secured purchase money credit). This cap applies to payday loans, refund anticipation loans (“RALs”) and credit cards, though it is currently being challenged in Congress. This cap does not apply to Americans who are not in the military.
