${site.data.firmName}${SEMFirmNameAlt} ${site.data.firmName}${SEMFirmNameAlt}
254-633-2876 | fax 866-825-8786
Main Menu
  • Let
  • Help
  • Free No Obligation

Bankruptcy Attorney
Helping People Of Waco
Find Debt Relief

The Military and Payday Loans

In my experience as a Waco Bankruptcy Attorney, payday lenders are the worse people you can owe money to. Interest and penalties can run up to 800% and many individuals complain that they just can't seem to pay them off. I have received numerous frantic calls from clients worried because a payday lender has threatened to put them in jail or told the client that I was lying and bankruptcy laws can't help them. I have yet to see a client go to jail due to a payday loan or a payday that isn't covered by the bankruptcy laws.

Since my bankruptcy office is so close to Ft. Hood and Killeen, I see payday lenders prey on our military servicemen and women all the time and it is a tragedy. A few years ago, Congress passed a law making it more difficult for payday lenders to make loans to our military personal, but it is still happening especially on the internet. Just try googling payday loans and military. I learned about some companies that will give special discounts to the military.

The law prohibited interest rates of more than 36% to military personal and their families. It also limits the payday lenders ability to ask for a post-dated check or banking information. Furthermore, the law prohibits:

  • Requiring military members to set up an allotment as a condition of receiving a loan.

  • Requiring the use of a vehicle title as security for any loans made to service members and military family members.

  • Using a check or any other access to a member's financial account as security for a loan.

  • Lenders from renewing, repaying, refinancing, rolling over, or consolidating consumer credit using the proceeds of other credit granted by the same lender to the military member.

  • Requiring military members to waive their rights under the Servicemembers' Civil Relief Act, or any other federal law.

  • Denying the opportunity for military members to pay the loan off early, and any penalties for early payments.

  • Any unreasonable clauses in the contract designed to make it difficult for military members to take a creditor to court.

  • States from allowing creditors to violate state consumer loan protection laws for military members who are nonresidents.

The reality is that many payday lenders prey on military families. However, bankruptcy can help. If you are ready to take the next step, call 254-633-2876 or email us at [email protected] to make a FREE, no-obligation consultation today to see what an experienced Waco bankruptcy attorney can do for you.

No Comments

Leave a comment
Comment Information
National Association of Consumer Bankruptcy Attorneys The College of the State Bar Of Texas Greater Waco Chamber of Commerce Member Logo

Office Location

The Kehl Law Firm, P.C. 3715 Bellmead Dr Waco, TX 76705


Fax: 866-825-8786

Waco Law Office Map

Connect With Us

Bold labels are required.

Contact Information

The use of the Internet or this form for communication with the firm or any individual member of the firm does not establish an attorney-client relationship. Confidential or time-sensitive information should not be sent through this form.


Privacy Policy