Laws proposed to further regulate short term loans for military corps, families

People from all walks of life can benefit from short term lending opportunities when an emergency arises and they have not saved enough. Many people can benefit from this lending option, using the amount on their next expected paycheck as collateral when borrowing. However, this form of alternative finance cannot be pursued by members of the military or their family members. Though the Military Lending Act has been in place for years, lawmakers at the Pentagon and Congress members are considering further regulating the borrowing habits of corps members. The current situation Bloomberg Businessweek explained the regulations were implemented after workers at the Pentagon complained soldiers are worried about the effects of short term loans for their families at home, and said that this is harmful and can affect their preparedness on the battlefield. Debts can also prohibit members of the military to obtain high security clearances often needed to perform duties. The Daily News reported former president George W Bush signed the Military Lending Act into law in 2006. The legislation eliminated the presence of short term lenders on military bases. The MLA also placed a cap on loans that military families could take out from short term and auto title loans to those with a 36 percent interest rate. Because virtually no lenders of this sort offer loans with rates that low, this basically made taking out short term loans impossible for those in the corps. New proposals Despite the relative success of the law, higher ups in the government are working to draft new rules regarding military loans. Because the law applies only to short term loans - usually those that must be paid back in under 90 days  - there have been potential loopholes. MSNBC reported internet short term lenders have appealed to military members that need fast cash by offering loans that do not have an end date but have interest rates exceeding the 36 percent cap. As such, the source explained the Senate banking committee has been holding discussions on adding amendments in the 2013 military spending guide. The Senate Armed Services Committee then approved making tweaks directly to the rules in the Military Lending Act on June 6 after the spending guide has been sussed out. However, a number of non-traditional lending companies have protested, explaining it limits the options available to soldiers who are struggling to pay expenses.