Bankers Lobby to Roll Back New Military Usury Cap
WASHINGTON – The banking lobby has been working on Capitol Hill for exemptions to the newly passed law setting the maximum allowable rate on loans to the military at 36% APR. In the latest effort, America’s Community Bankers is calling on the Department of Defense to exempt federally insured financial institutions–specifically banks and thrifts–from the new usury law. Representatives from the banking lobby, specifically American Bankers Association and Independent Bankers Association of America, have visited both CUNA and NAFCU in recent weeks to get enlist them in the fight to roll-back the new interest rate caps, but so far neither credit union group has agreed. The 36% rate cap, the bankers are arguing, could affect various types of credit, specifically credit card loans that may exceed that level, if fees are counted as part of the interest.