[Congressional Record Volume 151, Number 92 (Monday, July 11, 2005)]
[Extensions of Remarks]
[Page E1448]
From the Congressional Record Online through the Government Publishing Office [www.gpo.gov]


[[Page E1448]]
         MILITARY PERSONNEL, FINANCIAL SERVICES PROTECTION ACT

                                 ______
                                 

                               speech of

                        HON. K. MICHAEL CONAWAY

                                of texas

                    in the house of representatives

                         Monday, June 27, 2005

  Mr. CONAWAY. Mr. Speaker, I wish to express my strong support for 
H.R. 458, the Military Personnel Financial Services Protection Act. 
This legislation protects the men and women of our armed forces from 
predatory lenders that target service members.
  There are a number of companies known as ``military lenders'' that 
offer our troops ill-advised and costly products, such as loans with 
exorbitant rates and hidden fees. They often cluster around military 
installations and aggressively target service members and their 
families, who are uniquely vulnerable to these abusive marketing and 
collection practices. As an example, the zip code 76903 of San Angelo 
in my Congressional District borders Goodfellow Air Force Base and has 
11 banks and eight payday lenders.
  Unfortunately, a large number of our young troops have limited 
experience dealing with financial matters and many fall victim to 
abusive lending practices. Additionally, they often have relatively low 
incomes which may lead them to borrow in order to pay current expenses 
and debts. This is especially troubling in a time when we are 
experiencing extended troop deployments and families at home are 
struggling to make ends meet while the service member is deployed. The 
problem has become so pervasive that the Pentagon has launched a new 
effort aimed at educating our troops and warning them about the dangers 
of abusive military lenders.
  Not only do these predatory lending practices affect the financial 
well-being of the men and women of our armed services, but it also 
threatens the operational readiness of our military. The last thing we 
need is for service members who are putting their lives on the line for 
our nation to be overwhelmed with financial stresses back home.
  H.R. 458 addresses this problem by imposing certain restrictions on 
various types of specialty lenders that target service members. 
Additionally, it protects the interests of service members by requiring 
additional disclosures with regard to these types of loans. H.R. 458 is 
responsible legislation that protects the rights of the men and women 
of our military while still affording them options with regard to their 
finances.
  Mr. Speaker, I commend the House of Representatives for passing this 
legislation and addressing an issue that is vitally important to our 
nation's dedicated troops.

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