At Utah Money Center, we’re proud of the financial assistance we can provide to veterans and active service members in the US military. These heroes of our country are afforded special protections under federal law and the Department of Defense when it comes to car title loans, and we’re proud to abide by these and even often go a step further to help veterans get the funds they need if they’re in a pinch.
What are the special protections you’re afforded for title loans if you’re a veteran? Here are some of the basics to know.
Military APR
One of the most significant rules when it comes to the military and title loans refers to APR, or annual percentage interest rate. This amount refers to all interest costs narrowed down to a single yearly rate figure.
For military members or veterans, APR thresholds are limited. All car title loans offered since October 1, 2007 must have an APR at 36 percent or lower if the term is 181 days or less. In addition, nearly all fees and charges will be included in this number.
Creditor Requirements
There are also restrictions on creditors when it comes to military veterans, to stop them from being taken advantage of in any circumstance. Creditors cannot require use of a check or access to a bank account, for instance, and also cannot require mandatory arbitration or serve unreasonable legal notices. If not followed, these restrictions come with major penalties to creditors.
Disclosures and Protections
As a military veteran or service member, you must be offered disclosures about your rights as a borrower and your loan costs. Any arrangement where you were not made aware of these precise details in advance can be ruled void. For this reason, you may be asked to sign a statement about your military affiliation during the process.
For more on title loans and military veterans, or to learn about any of our signature loans, personal loans or other financing options, speak to the pros at Utah Money Center today.