[Congressional Record Volume 151, Number 90 (Thursday, June 30, 2005)]
[Extensions of Remarks]
[Pages E1405-E1406]
From the Congressional Record Online through the Government Publishing Office [www.gpo.gov]




          MILITARY PERSONNEL FINANCIAL SERVICES PROTECTION ACT

                                 ______
                                 

                               speech of

                       HON. LYNN A. WESTMORELAND

                               of georgia

                    in the house of representatives

                         Monday, June 27, 2005

  Mr. WESTMORELAND. Mr. Speaker, I rise today in strong support of 
Title II of H.R. 458. This provision protects our service men and women 
from the predatory practices of high cost military lenders. Companies 
such as Pioneer Financial have demonstrated the need

[[Page E1406]]

for increased lending restrictions due to their avaricious behavior.
  Pioneer Financial has realized that it can prey on military customers 
by charging unjustifiable rates, high fees and selling them expensive 
and often unnecessary credit insurance, and then refinancing the loan 
within a year to generate more fees. Some military customers have found 
alternatives to Pioneer's costly loan products, and because of this 
Pioneer has fought back and launched a targeted campaign to pass 
legislation that cripples its payday lender competitors and stops them 
from being able to sell to our military personnel.
  Mr. Speaker, no one deserves to be taken advantage of, and it is 
despicable that someone would specifically target the very people that 
are protecting the freedoms that allow us to participate in commerce at 
all. That is exactly why I support this bill.
  H.R. 458 protects and balances military borrowers' responsibilities 
and rights. It is important to note that the bill applies not only to 
payday advance lenders, but also to other higher-cost creditors like 
Pioneer, small loan companies, title lenders and finance companies.
  This legislation also ensures that military borrowers are given 
additional warnings and special protections if their lender targets 
military personnel and charges higher rates. In particular, borrowers 
are protected from garnishment and other collection activities while on 
active military duty. Further, H.R. 458 takes care to maintain access 
to many types of credit. By doing so, this bill provides both choice 
and protection for our service members.
  Mr. Speaker, I commend the members of the Financial Services 
Committee for addressing these abusive lending practices, and for 
protecting those who risk their lives to protect us every day.

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