Ordered to be Reported in the Nature of a Substitute by Voice Vote.
This bill requires the military to teach service members about their legal right to have interest rates on pre-service debts capped at 6% during active duty. It also makes it easier for service members to get that protection by requiring lenders to automatically apply the rate cap to all of a service member's debts once notified, and by letting service members submit paperwork online, by mail, or by fax.
Many service members don't know they have the right to cap interest rates at 6% on debts they took on before active duty , and even those who do often face a tedious process of notifying each lender about each individual debt. This bill would close both gaps by requiring the military to teach these rights and by forcing lenders to apply the cap across all of a service member's accounts once notified about just one.