Predatory lending rules change for military and dependents Published Oct. 18, 2007 By Capt. Reagan Beaton 4th Fighter Wing legal office SEYMOUR JOHNSON AIR FORCE BASE, N.C. -- As of Oct. 1, the John Warner National Defense Authorization Act for fiscal year 2007 imposed a new scheme of rate regulation and disclosure for consumer credit offered to armed services members and their dependents. The term consumer credit includes all consumer credit, including payday loans, vehicle title loans and tax refund anticipation loans, with the exception of residential mortgages, purchase money automobile loans and certain secured personal property loans. The act states a lender cannot charge more than a 36 percent annual percentage rate on consumer credit, including all fees, and must inform the borrower of the set rate. It limits lenders' ability to minimize legal action and roll-over or consolidate loans, as well as establishes monetary and criminal penalties for knowing violations. For those having trouble meeting financial obligations, or feeling they are being victimized in violation of this act, they should seek out available resources to include the legal office, their first sergeant, the Airman and Family Readiness Center or the Air Force Aid Society. For more information, contact the legal office at 722-5322.