[Congressional Record (Bound Edition), Volume 151 (2005), Part 11]
[Extensions of Remarks]
[Page 15922]
[From the U.S. Government Publishing Office, www.gpo.gov]




   H.R. 458--THE MILITARY PERSONNEL FINANCIAL SERVICES PROTECTION ACT

                                 ______
                                 

                        HON. PATRICK T. McHENRY

                           of north carolina

                    in the house of representatives

                        Wednesday, July 13, 2005

  Mr. McHENRY. Mr. Speaker, I rise today to strongly support H.R. 458, 
the Military Personnel Financial Services Protection Act, and 
specifically to highlight Title II of this very important legislation. 
Title II is designed to protect our brave soldiers as they fight to 
defend our freedoms, by regulating all lenders that qualify as military 
lenders--including payday advance businesses, small loan companies, 
finance companies, or other types of creditors.
  I would like to thank Congressman Westmoreland, the sponsor of this 
bill, as well as Chairman Oxley and Chairman Bachus. We would not be 
able to eliminate unscrupulous lenders from offering these products 
without the leadership demonstrated by the House Financial Services 
Committee.
  As a representative from North Carolina, I am particularly concerned 
with protecting our military. North Carolina is the most military 
friendly State in the Nation. With bases such as Fort Bragg and Camp 
Lejeune, I am familiar with financial lenders that prey on our 
servicemen and women. These companies hurt our military by charging 
unjustifiable rates, using products with hidden fees, and refinancing 
loans to the detriment of military consumers. It often takes honest 
soldiers years to escape the financial hardships caused by these 
dishonest practices.
  Our soldiers, like all American citizens, have a variety of financial 
service needs and value having a wide array of choices and alternatives 
to fulfill those needs. I applaud many of these alternative financial 
services outlets, including payday lenders, for striving to protect 
military personnel by conforming to the best practices recommended by 
the Community Financial Services Association, a panel of distinguished 
retired military members.
  Rather than unnecessarily prohibiting lenders and limiting the 
options for our military, H.R. 458 cracks down on abusive practices 
while preserving access to credit. Title II mandates these necessary 
protections, such as disclosures and marketing and collection reforms, 
on a broad range of military lenders. Under Title II, all military 
lenders will be required to provide detailed disclosures on a variety 
of subjects. These mandatory disclosures include:
  Not requiring service members to complete agreements merely because 
they signed an application or received a notice;
  Advising military personnel, who are seeking short-term credit due to 
a family or other emergency, to consider applying through one of the 
Armed Forces' Relief Societies, the United Service Organizations or 
another base or military organization;
  Acknowledging that any credit extension is not sponsored or endorsed 
by the Armed Forces, the Department of Defense, or any Federal entity;
  That the lender may not contact the borrower's commanding officer or 
chain of command to collect the debt; and
  That the service member and his/her dependents may have additional 
protections which cannot be waived, even if suggested or required by 
the lender.
  Again, my sincere thanks to the financial institutions that pushed 
for these reforms and to Congressman Westmoreland for his leadership. I 
look forward to working with my colleagues and our partners in the 
private sector to eliminate abusive practices and protect the financial 
health and access of our military.

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