Soldier files suit after being charged $4,000 interest on $3,000 loan

[The Straight Story]

Soldier files suit after being charged $4,000 interest on $3,000 loan


SAVANNAH, Ga. — Army Staff Sgt. Jason Cox says he borrowed $3,000 for an emergency trip to pick up his daughter. The loan ended up costing him more than $4,000 in interest, plus a sport utility vehicle the lender seized when he defaulted.

Now the Fort Benning soldier is suing the lender in federal court, contending the interest rate and other terms violated a 2007 law passed by Congress to protect military service members from predatory lending.

Cox’s lawyer, former Georgia Gov. Roy Barnes, is trying to persuade a federal judge to grant class-action status because the lender, Atlanta-based Community Loans of America Inc., operates more than 900 stores in 22 U.S. states. Barnes believes numerous soldiers have taken out similar loans, likely without knowing the terms are illegal, though it’s not clear how many.

“The rates are so lucrative for those that ignore the law,” said Barnes, a Democrat who pushed a statewide crackdown on high-interest payday loans when he was governor from 1999 to 2002. Some in the military are too busy with moves between bases and overseas deployments to bring lawsuits or complain, Barnes said.

http://chronicle.augusta.com/news/metro/2011-11-23/soldier-files-suit-after-being-charged-4000-interest-3000-loan?v=1322092281

[Hassin Bin Sober]

1. Commie pinko Democrats meddling in the free market again.

[The Straight Story]

2. Heh, gonna post it on FB and note the date

But will still probably hear the RW complain about the evil dems :)

[Scuba]

3. And Repukes think the lenders are over-regulated. Keep this story kicked....

.... banks and other lenders screwing over our servicemen and women will resonate with People who might otherwise not care.