The answer that is short no. Loan providers are subject to the car title loans Military Lending Act (MLA) вЂ” a law meant to avoid loan providers from gouging personnel that are military excessive rates of interest and charges that are included with payday advances, taxation reimbursement expectation loans and vehicle name loans.
Active-duty members that are armed forces military partners are protected under this work that needs:
- A 36% limit on interest levels. This limit is on rates of interest on loans with terms under 3 months. While still high, a 36% rate of interest is much more reasonable compared to three-digit APRs that will come with some short-term loans. (more…)