According to the Associated Press, a Georgia man is claiming that he was the victim of “predatory lending” when he took out a high-interest loan that he ultimately defaulted on. He now claims that this loan was against federal law which prohibits predatory lending to members of the military.
SAVANNAH, Ga. — A Georgia-based soldier is suing a business that loaned him $4,100 at high interest, saying the terms violated a 2007 federal law that protects military service members from predatory lenders.
Army Staff Sgt. Jason Cox of Fort Benning says the car-title loan he took out last year cost him more than $4,000 in interest alone. He defaulted and the lender repossessed his Dodge Durango. …
Barnes is seeking class-action status because the lender, Community Loans of America, has more than 900 stores in 22 states. It’s not clear how many military members have been affected.
I wonder how you can be a victim of a loan agreement you entered into voluntarily? Barring some evidence to indicate that this man was deceived as to the interest rate and other pertinent requirements of the loan agreement, it’s hard to see how this sort of loan is illegal.
It may be unwise to take a loan with such a high interest rate, but making an unwise decision only makes you a victim of yourself.