Oklahoma City, OK 73105
For Immediate Release:
February 12, 2007
Senator Andrew Rice
Bill to Protect Military Personnel from
Predatory Lending Dies in Committee
State Senator Andrew
Rice said his measure to protect Oklahoma’s military personnel
from predatory lending is dead for the session after failing to
receive passage from a Senate committee on Monday.
Rice said Senate Bill 807 would have established safeguards to
help consumers, military and non-military citizens from being caught
in a cycle of chronic borrowing.
“I am disappointed that my bill died in committee because
of a tie vote,” said Rice, D-Oklahoma City. “At the
request of the Department of Defense, Congress passed similar legislation
and President Bush signed it into law. My bill would have empowered
our local authorities to have the statutory ability to protect our
military personnel at bases like Tinker and Vance from these dangerous
Rice said statistics from the Center for Responsible Lending estimate
that the average borrower at a payday lending business pays $1,105
to borrow just $325. In Oklahoma, the average number of storefront
payday lending stores per zip code is 1.9. Yet, Tinker Air Force
Base has 23 lenders in adjacent zip codes, Vance Air Force base
has 8, there are 7 near Fort Sill and 5 near Altus.
Rice noted that even the Pentagon has released a 92 page report
entitled: “Report on Predatory Lending Practices Directed
at Members of the Armed Forces and Their Dependents”, which
states that abusive predatory lending to active-duty military has
reached a point of serious concern.
Sen. Tom Adelson, Co-Chair of the Senate Committee on Health and
Social Services, expressed disappointment that the bill was not
“I’m surprised that these important protections for
our military were rejected by most of the Republican members of
the committee,” said Adelson, D-Tulsa. “This is especially
disappointing considering that President Bush felt our military
deserved these protections and signed similar legislation into law.
The state chapter of the AARP also supported this legislation because
our elderly are especially vulnerable to these practices.”
Rice said it was unfortunate that Oklahoma’s military personnel
would have to wait until the next legislature for action to be taken
on the issue.
“These loans are meant to be used for emergency, one-time
scenarios, but many workers find themselves taking out new loans
to pay off the old ones,” Rice said. “Unfortunately,
the protections that I hoped to afford the consumers will not be
For more information contact:
Senator Rice's Office - (405) 521-5610