Mail piece sent to California’s impacted military families
After Congressman Knight voted to delay critical protections for U.S. troops from predatory lenders, The Democratic Congressional Campaign Committee is launching a paid advertising campaign to hold Knight accountable. Knight is a member of the Military Personnel Subcommittee, which sought to delay a regulation that would protect service members from egregious practices of the predatory lending system.
During this week’s congressional recess, Knight will be met with mailers and digital ads targeted to reach California’s impacted military families, the same constituency that he just voted against back in Washington. California military families have been hit hard by predatory lenders. For example, one California lender charged a 219% APR to a service member, adding nearly $4,000 in charges to a $2,600 loan.
“By voting to delay protecting our troops from predatory lenders, Knight has made it clear that he has the backs of payday lenders and special interests, rather than service members and their families,” said Matt Thornton of the DCCC. “Perhaps Knight thought he could get away with voting against our troops during a late-night committee meeting, but we will be using this recess to call out his shamefully wrong priorities.”
Background:
Huffington Post: “Republicans Already Under Fire For Voting To Block Predatory Lending Protections For Troops.” [Huffington Post, 5/04/15]
Knight Voted Against Removing Language Postponing Protections For Service Members From Predatory Lenders. “House Democrats successfully knocked down a GOP plan early Thursday morning that would have blocked predatory lending protections for American soldiers. Republicans had slipped the deregulation measure into the National Defense Authorization Act — a major bill that sets the military’s funding levels. The bill would have imposed a one-year delay on new Department of Defense rules designed to shield military families from abusive terms on payday loans and other forms of expensive short-term credit.” Knight was one of 30 Republicans to oppose the amendment. [Huffington Post, 4/30/15]
California Lender Extended $2600 Loan To Service Member With $3,967 Finance Charge From 219% APR. “A lender operating pursuant to the California Financial Lenders Law extended to a service member an installment loan with an APR of 219.12 percent. The finance charge on the $2,600 loan (including $300 credited to an existing account with the lender) was $3,966.84 over the 12-month term. Concurrent with the extension of the loan, the borrower authorized the lender to initiate an electronic funds transfer for repayment. Although the Military Lending Act prohibits lenders from taking account access to repay a debt and from charging a cost of credit that exceeds 36 percent Military Annual Percentage Rate, this loan was not subject to the protections of the Military Lending Act because the amount financed was more than $2,000 and the loan duration exceed 91 days.” [CFPB – Extension of High-Cost Credit Report, December 2014]