Dear Military Personnel,When they can make loans to other customers at over 1140%, it's no wonder they are refusing a paltry 36%. It's just not profitable.
Beginning October 1, 2007, we will no longer be able to serve military personnel or their spouses and dependents who seek short-term loans, commmonly referred to as payday loans. The Department of Defence Military Lending Act, which takes effect that day, requires such loans to be granted at 36% APR. We regret that our Company simply cannot offer a product at that rate restriction.
At a 36% APR, the total fee charged on a $100, two-week advance would be $1.38. We cannot cover the cost of originating a loan, let alone meet employee payroll and benefits and other fixed business expenses, at this rate.
Seriously, though. Stay away from payday loans, kids.
