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EasyPay Finance & Military Lending Act

 

 

 

The Military Lending Act protects servicemembers and military families from excessive interest rates above 36% APR. Despite this, reports show a growing trend of unscrupulous lenders, including EasyPay Finance, who may be charging high interest rates, as much as 189% APR.

These lenders describe themselves as offering a “buy now, pay later” product, with the lender fronting the money for a purchase. In reality, these products are simply loans. As a loan, the lender is required to abide by the Military Lending Act and its rate cap.

EasyPay Finance has partnered with furniture stores and car repair shops to push their product in the vicinity of military bases, targeting service members and their families, according to a report. Servicemembers and their families, who need help paying for new furniture or an unexpected car repair, deserve fair treatment and should not be targeted for exploitation by lenders.

military lending car repair

According to a report, EasyPay Finance seeks to evade state lending laws by partnering with a Utah based bank, Transportation Alliance Bank (TAB Bank). TAB Bank is named as the “lender” on the agreements, even though the loans are marketed, serviced, and collected by EasyPay Finance.

Recently, a petition signed by more than 44,500 consumers urged the federal government to consider TAB Bank’s history of predatory lending when considering the bank’s Community Reinvestment Act (CRA) rating. According to the consumers, the federal government “should downgrade TAB Bank’s CRA rating in light of the extensive evidence of the abusive lending and potential violations of the law that it is facilitating. High-cost credit that extracts wealth and burdens borrowers in debt does not meet credit needs in a responsible manner and must be penalized on CRA exams.”

If you or your family are active-duty service members who have taken out financing from EasyPay Finance with interest rates above 36% APR, fill out a free case review form. Our team may be able to help.

What is the Military Lending Act and what are my rights?

If you’re an active duty servicemember, the Military Lending Act (MLA) provides you with special protections when it comes to borrowing money. For example, the MLA caps the interest rates that can be charged on many types of loans.

Here’s a quick overview of the Military Lending Act and what it means for you:

  • It is a federal law that was enacted in 2006.
  • The purpose of the MLA is to protect servicemembers from being taken advantage of by lenders.
  • The MLA applies to a wide range of loans, including payday loans, car title loans, refund anticipation loans, and tax preparation services.
  • The MLA caps the interest rates that can be charged on covered loans at 36%. This rate may be higher in some cases, such as when the loan is used to buy a vehicle.
  • In addition to capping interest rates, the MLA also requires lenders to provide certain disclosures to servicemembers. For example, lenders must disclose the total cost of the loan before it is finalized.
  • The MLA also gives servicemembers the right to cancel certain types of loans within three business days without having to pay any fees.

How We Can Help

If you or your family are active-duty service members who have taken out financing from EasyPay Finance with interest rates above 36% APR, fill out a free case review form. Our team may be able to help.