Payday Lenders Adopt Ethics Code ForMilitary Personnel

June 24, 2005, 1:00 a.m. EDT 1 Min Read

WASHINGTON - (06/24/05) -- Faced by strict new rules fordealing with enlisted men and women, the nation's payday lenderssaid Thursday they have adopted a new ethical code of conduct fordealing with military personnel. The Financial Service Centers ofAmerica, the trade association for payday lenders, said they haveasked member companies to immediately suspend or defer debtcollection involving soldiers stationed in or assigned to a combatarea during the term of their posting. The 14-point code of conductcalls for payday lenders to: defer collections from NationalGuardsmen or military reserves when there is an unanticipatedcall-up of their units; make reasonable inquiry into a soldier'sability to repay a payday loan; make financial literacy materialsavailable to military borrowers; make reasonable payment plansavailable; prompt response and cooperation with armed servicesfinancial counselors seeking to establish payment plans formilitary personnel; curb collection practices that might adverselyaffect the service status of borrowers; prohibit wage garnishmentson military personnel; among other things.

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