Lawmakers set goal to close loopholes in the Military Lending Act: Some lenders have re-designed their products to skirt the interest rate caps built in to the 2007 Military Lending Act. As initially constructed, the MLA limited interest rates to 36 percent on closed-end loans. Other provisions included bans on pre-payment penalties, mandatory arbitration, and some examples of "roll-overs." Given that structure, the MLA shielded service members from auto title loans, payday loans, and refund anticipation loans. But no provision was made for revolving lines of credit or for overdrafting. Now, however, innovative lenders have constructed open ended lines of credit with three-digit interest rates. Senators Reed, Brown, and Warren are leading an effort to get the Department of Defense to re-write the MLA.
Consumer Portfolio Services (CPS) outlines successful quarter: CPS' investor call revealed a couple of interesting things. For one, the discount it takes against loans it facilitates from dealers is dropping, which hints at increased competition. Also, the company reported that