Attempts to Regulate Payday Lenders Currently, garnishment of social security benefits is illegal and all active-duty military families are protected by the Military Lending Act signed into law on October 2006 - capping interest rates at 36% on all small loans, including payday loans, for all military families.[43] Small loans are governed by state law, and many states have implemented restrictions on payday lenders.[44] For example, many state have placed restrictions… [read post]