Defense CUs Wait on Predatory Loan Rule

HONOLULU–The nation’s credit unions, especially defense credit unions, are eagerly awaiting a final rule setting new predatory lending rules for military personnel. The proposed rule is aimed at high-rate lenders, such as payday loan companies, check-cashers and title lenders, and would have limited impact on credit unions by setting a maximum allowable 36% annual percentage rate—including all fees—charged military personnel and their dependents for payday loans, auto title loans and refund anticipation loans. But credit union officials are holding their breath as the Department of Defense completes its final rule, due by Sept. 1. “I won’t rest until one (Sept. 1),” said Roland “Arty” Arteaga, director of the Defense CU Council, during NAFCU’s annual convention here.