A federal law that went into effect in 2007 was meant to protect members of the US military from predatory loans. These payday loans charged sky-high interest rates – up to 400 percent and more. The Military Lending Act capped short-term loans with a 36-percent APR.
But a new investigation from ProPublica and Marketplace finds that lenders have found ways around those regulations. Paul Kiel, a reporter with ProPublica who co-wrote the story, joins the show with more.