Asked by V?n Linh Nguy?n on Jun 17, 2024
Verified
Since October 1,2007,payday loans to military and families have been restricted to charging interest rates
A) less than 10 percent.
B) less than 25 percent.
C) less than 36 percent.
D) less than 55 percent.
Payday Loans
Short-term, high-interest loans that are typically due on the borrower's next payday, often used to cover immediate financial needs.
Interest Rates
The cost of borrowing money or the return on investment for savings, typically expressed as a percentage.
Military
The armed forces of a country, responsible for defending it from external threats and ensuring internal security, often involving significant personnel and technology.
- Gain insight into how usury statutes influence the borrowing and lending sector.
Verified Answer
DD
diana dominguezJun 20, 2024
Final Answer :
C
Explanation :
The Military Lending Act enacted on October 1, 2007, restricts payday loans to military personnel and their families to charging an interest rate of less than 36 percent. This law was put in place to protect service members from predatory lending practices and high-interest rates that could lead to financial difficulties.
Learning Objectives
- Gain insight into how usury statutes influence the borrowing and lending sector.