Its not fraud. Its just good business sense. If your to stupid to read the small print, whose fault is that? Are you all a bunch of democrats in that you want the government to regulate business?
Sorry but if the GI is to stupid to realize he is getting ripped off, its not my fault. As long as they are legal we should have no problems. High pressure sales tactics and all that are legal so...to bad GI.
Believe it or not, but there have been cases where 'fine print' has been thrown out in court because the court determined that it substantially changed the contract, and was deliberately hidden/obfusticated.
IE you're not allowed to put the 'fine print' into that microdot that looks like a period. Or have your salespeople try to get the 'client/sucker' to skip over that section of fine print, etc...
I disagree with some of the tenants behind the cap. For one, if they do it for military, they should do it for everyone, but on the other hand, it'd bring back black market loansharking.
I really favor approaching it from the education side - maybe require that they disclose the 'effective annual interest rate' IE count all fees as interest, calculate over duration of loan, and adjust to annual basis. That should solve many of the problems.