The measure imposing a 36 percent cap on the annual interest rate for payday loans to service members or their spouses will be included in the defense authorization bill. The House passed the bill Friday, but it stalled in the Senate.

"We need to enact these new protections for our troops and their families because a growing predatory-lending problem has impacted our operational readiness," said Sen. Jim Talent, R-Mo., who pushed the measure in the Senate.

Talent and other lawmakers contend payday lenders target military personnel, offering quick cash advances at outrageously high interest rates that trap unsavvy borrowers in a cycle of debt.

Payday lenders offer short-term loans against borrowers' paychecks and charge fees. Borrowers who cannot repay the loan by the next payday often "roll over" the loan repeatedly, leading to more charges.

The average annual percentage rate for payday loans is about 390 percent. As lending fees pile up, borrowers can end up paying annual percentage rates of 800 percent or more.

Other types of credit extended to military personnel, including credit cards and installment- loan products, are also covered under the new interest-rate cap.

The Defense Department strongly supported the rate-cap measure after issuing a report earlier this year finding many payday lenders are clustered around military bases.