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Payday lenders find ways to skirt Military Lending Act




A general view of a 'Speedy Cash' cash loans shop on Brixton High Street.
A general view of a 'Speedy Cash' cash loans shop on Brixton High Street.
Dan Kitwood/Getty Images

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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.