The Pentagon issued Monday a press release saying it hopes the new 36 percent cap will help military families, and said payday and car title loans "often lead to a cycle of ever-increasing debt" as families cannot repay them on time, and take out more loans to cover earlier loans.

"The protection the regulation offers is not a wall preventing a service member from getting assistance, rather it is more like a flashing sign pointing out danger and directing the borrower to a safer way of satisfying immediate financial need," said Leslye A. Arsht, deputy undersecretary of defense for military community and family policy.

He said financial help for members of the military is available through a member's chain of command, legal assistance office or military aid society.

The new law came after the military complained that many members were having problems with the short-term loans, and loan stores seemed to surround military bases. The 2005 Morning News series found an especially high concentration of such stores in Utah near Hill Air Force Base.

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