Grothman Introduces Veterans and Consumers Fair Credit Act

Congressman Glenn Grothman and Representative Jesus Garcia
from Illinois introduced this week a bill that will curb forms of predatory
lending that targets veterans and consumers.

According to a news release, the Veterans and Consumers
Fair Credit Act will “curb high-cost, predatory payday loans, auto-title loans
and similar forms of toxic credit across the country.”

The bill extends a rate cap of 36 percent on those types of
loans to veterans, Gold Star Families and all other Americans. The rate cap was
first introduced in 2006 as part of the Military Lending Act, and only applied
to active duty service members and their families when they tried to take out
predatory loans. The release says the rule has been “wildly successful”, and
has protected those members of the military and their families from falling into
a cycle of debt.

A companion bill is being introduced by a group in the U.S.
Senate.