- Associated Press - Monday, December 22, 2014

ALBANY, N.Y. (AP) - New York’s attorney general, joined by counterparts in 17 other states, is urging the Defense Department to strengthen proposed regulations intended to protect soldiers from predatory lenders.

Attorney General Eric Schneiderman says the rules, implemented since the 2007 Military Lending Act was adopted, have led to unscrupulous lenders changing tactics to stay legal.

The department in September proposed revisions in its regulations.

The state attorneys general say the changes would close some loopholes but still leave service members vulnerable to other abusive lending practices.

They say the weaknesses include an overly broad exemption for fees that may be charged in excess of the law’s 36 percent interest rate cap and failure to regulate secured loans that are exempt from the law’s protections.


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