“Given the many sacrifices military families make, it is deeply disturbing that predatory lenders would target them with exploitive financial schemes,” Sen. Mazie HironoMazie Keiko HironoSenate Democrats demand answers on migrant child trafficking during pandemic Overnight Defense: Guardsman to testify Lafayette Square clearing was 'unprovoked escalation' | Dems push for controversial Pentagon nominee to withdraw | Watchdog says Pentagon not considering climate change risks to contractors Democrats urge controversial Pentagon policy nominee to withdraw MORE (D-Hawaii) said Wednesday. “I’m proud to join with my colleagues in urging the Department of Defense to tighten up financial protections for military families and close loopholes that leave service members vulnerable to these predatory practices.”

ADVERTISEMENT

The senators said payday lenders “cluster” around military bases and target advertising toward service members. 

The Department of Defense has the authority to write rules to protect service members from certain predatory loans, but the senators said the DOD failed to include high-interest products, such as overdraft loans, installment loans, nontraditional payday loans and nontraditional car title loans in its definition of “consumer credit.”

“Due to the narrow definition of consumer credit, certain lenders are offering predatory loan products to service members at exorbitant triple digit effective interest rates and loan products that do not include the additional protections envisioned by the law,” the letter stated. “Service members and their families deserve the strongest possible protections and swift action to ensure that all forms of credit offered to members of our armed forces are safe and sound.”

Currently, loans that fall under the definition of consumer credit are capped at an interest rate of 36 percent. The DOD is considering rule changes to its consumer credit protection program. The lawmakers said that if the DOD expanded its definition of consumer credit to apply to more types of loans, then rates for service members would not exceed the 36 percent mark.

In addition to Hirono, Democratic Sens. Jack ReedJohn (Jack) Francis ReedSenate Democrats demand answers on migrant child trafficking during pandemic Overnight Defense: Embattled Pentagon policy nominee withdraws, gets appointment to deputy policy job | Marines, sailor killed in California training accident identified | Governors call for extension of funding for Guard's coronavirus response Controversial Trump nominee placed in senior role after nomination hearing canceled MORE (R.I.), Dick DurbinRichard (Dick) Joseph DurbinSunday shows preview: White House, congressional Democrats unable to breach stalemate over coronavirus relief On The Money: Pessimism grows as coronavirus talks go down to the wire | Jobs report poised to light fire under COVID-19 talks | Tax preparers warn unemployment recipients could owe IRS Pessimism grows as coronavirus talks go down to the wire MORE (Ill.), Mark UdallMark Emery UdallThe 10 Senate seats most likely to flip Democratic presidential race comes into sharp focus Democrats will win back the Senate majority in 2020, all thanks to President Trump MORE (Colo.), Joe DonnellyJoseph (Joe) Simon DonnellyEx-Sen. Joe Donnelly endorses Biden Lobbying world 70 former senators propose bipartisan caucus for incumbents MORE (Ind.), Brian Schatz (Hawaii), Tom UdallThomas (Tom) Stewart UdallSenate Democrats demand answers on migrant child trafficking during pandemic Democrats introduce bill to ban chlorpyrifos, other pesticides to protect farmworkers GOP lawmaker says he will oppose any attempts to delay election MORE (N.M.), Richard Blumenthal (Conn.), Bill NelsonClarence (Bill) William Nelson Trump, facing trouble in Florida, goes all in NASA names DC headquarters after agency's first Black female engineer Mary W. Jackson NASA, SpaceX and the private-public partnership that caused the flight of the Crew Dragon MORE (Fla.), Tom HarkinThomas (Tom) Richard HarkinErnst challenges Greenfield to six debates in Iowa Senate race Biden unveils disability rights plan: 'Your voices must be heard' Bottom line MORE (Iowa), Sheldon WhitehouseSheldon WhitehouseSenate Democrats demand answers on migrant child trafficking during pandemic Democrats seek to exploit Trump-GOP tensions in COVID-19 talks Liability shield fight threatens to blow up relief talks MORE (R.I.), Claire McCaskillClaire Conner McCaskillDemocratic-linked group runs ads in Kansas GOP Senate primary Trump mocked for low attendance at rally Missouri county issues travel advisory for Lake of the Ozarks after Memorial Day parties MORE (Mo.), Elizabeth WarrenElizabeth WarrenBiden campaign says no VP pick yet after bike trail quip Biden edges closer to VP pick: Here's who's up and who's down Democratic convention lineup to include Ocasio-Cortez, Clinton, Warren: reports MORE (Mass.), Jeff MerkleyJeffrey (Jeff) Alan MerkleySenate Democrats demand answers on migrant child trafficking during pandemic Hillicon Valley: NSA warns of new security threats | Teen accused of Twitter hack pleads not guilty | Experts warn of mail-in voting misinformation Merkley, Sanders introduce bill limiting corporate facial recognition MORE (Ore.), Al FrankenAlan (Al) Stuart FrankenCNN publishes first Al Franken op-ed since resignation Political world mourns loss of comedian Jerry Stiller Maher to Tara Reade on timing of sexual assault allegation: 'Why wait until Biden is our only hope?' MORE (Minn.), Ed MarkeyEdward (Ed) John MarkeySanders offers bill to tax billionaires' wealth gains during pandemic Senate Democrats demand answers on migrant child trafficking during pandemic Budowsky: Why I back Kennedy, praise Markey MORE (Mass.), Kirsten GillibrandKirsten GillibrandExpanding our health force can save lives and create jobs simultaneously Sanders offers bill to tax billionaires' wealth gains during pandemic Senate Democrats demand answers on migrant child trafficking during pandemic MORE (N.Y.), Mark WarnerMark Robert WarnerThe Hill's Campaign Report: US officials say Russia, China are looking to sow discord in election US intelligence says Russia seeking to 'denigrate' Biden GOP chairmen hit back at accusation they are spreading disinformation with Biden probe MORE (Va.), Ron WydenRonald (Ron) Lee WydenTrump signs executive orders after coronavirus relief talks falter Senate Democrats demand answers on migrant child trafficking during pandemic Hillicon Valley: Facebook removes Trump post | TikTok gets competitor | Lawmakers raise grid safety concerns MORE (Ore.), Patty MurrayPatricia (Patty) Lynn MurrayPelosi huddles with chairmen on surprise billing but deal elusive House approves two child care bills aimed at pandemic GOP, Democratic relief packages B apart on vaccine funding MORE (Wash.), Sherrod BrownSherrod Campbell BrownOvernight Defense: Guardsman to testify Lafayette Square clearing was 'unprovoked escalation' | Dems push for controversial Pentagon nominee to withdraw | Watchdog says Pentagon not considering climate change risks to contractors Democrats urge controversial Pentagon policy nominee to withdraw Chamber of Commerce, banking industry groups call on Senate to pass corporate diversity bill MORE (Ohio), Martin HeinrichMartin Trevor HeinrichSenate Democrats demand answers on migrant child trafficking during pandemic OVERNIGHT ENERGY: 20 states sue over Trump rule limiting states from blocking pipeline projects | House Democrats add 'forever chemicals' provisions to defense bill after spiking big amendment | Lawmakers seek extension for tribes to spend stimulus money Lawmakers seek extension for tribes to spend stimulus money following Treasury delays MORE (N.M.) and Tammy BaldwinTammy Suzanne BaldwinDemocrats try to force Trump to boost medical supplies production Senate Democrats demand answers on migrant child trafficking during pandemic Biden: I'll have a running mate picked next week MORE (Wis.) signed the letter.