Military Warns Personnel on Payday Loans(loan sharks targeting military)

~snip~
Now the Defense Department is launching a new effort to warn service members about the dangers of payday loans, citing new reports that suggest these lenders are targeting them.

John Molino, deputy undersecretary of defense for military community and family policy, said last week the department would begin teaching service members how payday loans can lead to an endless cycle of debt.

A study released last month by two professors at the University of Florida and California State University found "irrefutable geographic evidence demonstrating payday lenders are actively and aggressively targeting U.S. military personnel."

In 12 of 19 states surveyed, the study found the single greatest concentration of payday loan stores in a county with a military base. Those states are Arizona, California, Colorado, Delaware, Florida, Kentucky, North Carolina, South Carolina, South Dakota, Texas, Virginia and Washington.

~snip~
more:http://news.yahoo.com/news?tmpl=story&u=/ap/20050625/ap_on_re_us/payday_loans_military_2

You screw them so bad they need money, are you going to help them???

Tavis Smiley on Payday Loans from a few years ago.
http://www.npr.org/templates/story/story.php?storyId=1145190


I'm trying to find the more recent one where someone was interviewed re: payday loan sharks seeking out members of the military.


AH! Here it is:

Storefront Lenders Take Toll on U.S. Military

Listen to this story... by John McChesney

All Things Considered, May 11, 2005 · Scores of U.S. military personnel are falling deeply into debt after taking on loans from storefront lenders who charge sky-high interest and fees. The military is looking to state lawmakers for action, but few states have responded.

http://www.npr.org/templates/story/story.php?storyId=4648543

the free enterprise system. Nobody FORCES those soldiers to take out those high interest loans. These business men are providing a service to our men and women in uniform, they're American patriots!

:sarcasm:

This will be the Republicans' thoughts on the matter, I'm sure. NOTHING stands in the way of corporate profits as far as they're concerned. This will "trickle down" and help many less fortunate Americans in the end. :eyes:

at the payday loan industry convention this year.

Politicians have been soooo generous to these loan-sharking operations, which often charge 600 percent interest on these loans.

Usury laws have been totally relaxed (via the politicians), opening the door for these "businesses" to prey on those who live paycheck to paycheck--and charge ridiculously high interest rates.

I'll dig for more info on DeLay's connection to this industry....

According to Wall Street tea leaf readers, one of the major loansharking companies, Cash America, also stands to profit from increased energy and health costs, leading analysts to rate it a "strong buy" for people who don't have to worry about ever being charged a 700% interest rate. Not surprisingly, Cash America, which is based in Texas, has donated to the PAC formed by a Tom DeLay crony and its federal PAC gave to Republicans over Democrats by a two to one margin. Cash America's profits are so strong that it has catapulted into the Forbes 200 Best Small Companies, along with Texas competitor First Cash. ("Best" clearly means most profitable, not "best" in any other sense of the word.)


http://lefarkins.blogspot.com/2004/12/now-for-something-different.html

they don't care about loan sharking...just who makes the money. "shush funds" (loan sharking) have been a part of the military forever.

The industry has important friends. For example, Rep. Tom DeLay, R-Texas, the powerful House majority leader, delivered the keynote address in March to the trade group's annual convention.

http://www.knowledgeplex.org/news/89024.html

http://lefarkins.blogspot.com/2004/12/now-for-something-different.html

There's something that's not clear from today's New York Times article about how payday loan sharks are ripping off military families: the payday loan industry is in bed with the Republican Party.

According to Wall Street tea leaf readers, one of the major loansharking companies, Cash America, also stands to profit from increased energy and health costs, leading analysts to rate it a "strong buy" for people who don't have to worry about ever being charged a 700% interest rate. Not surprisingly, Cash America, which is based in Texas, has donated to the PAC formed by a Tom DeLay crony and its federal PAC gave to Republicans over Democrats by a two to one margin. Cash America's profits are so strong that it has catapulted into the Forbes 200 Best Small Companies, along with Texas competitor First Cash. ("Best" clearly means most profitable, not "best" in any other sense of the word.)

According to data collected by the Center for Responsive Politics, these firms have PACs that gave to Republicans rather than Democrats in the 2004 election cycle by an average ratio of two to one. So you know who's pushing for their legislative interests and what those legislative interests are: less regulation, less tax, you get the idea.

The economy must really be in the crapper if a small town of 17,000 people near me can support the 5-10 "cash stores" and title loan business's. I know I wouldn't have the required lack of morals to make my living ripping off poor people.

:sarcasm:

Isn't loaning money at exorbitant rates to people who can't pay back the loan and then protecting yourself from any risk covered in the first amendment to the Constitution? Why do critics of pay-day loan operations hate our freedoms? :sarcasm:

Course, the military puts some soldiers into a position where they screw up the soldiers pay for months....forcing them to take desperate measures. AER loans are not generally approved because the military screwed up the pay. The military rationale is the soldier should have been saving up... just in case a payday screw-up does happen.

Military payday glitches are not uncommon. Not uncommon at all.(Been there, done that - didn't get the payday loan T-shirt because I never had to go to one)

Since the mid 90's, part of the welcome briefing (to a new post/where applicable) came with a warning against dealing with the area payday loan businesses (of which there were many, located just outside post' gates)

To be fair, there are soldiers and their families who get taken advantage of because they put themselves into that position. This isn't to say those payday loan businesses are innocent-they are not, they are predators....but you do find soldiers who spend all their pay by the next day ,and then go get a loan until the next pay period...so they're constantly paying on the interest because they spend next cycles pay as well in a matter of days.

While the military can mandate a soldier take a budget class and can even force a soldier to have a budget...I've seen it happen...they aren't as proactive as they could be in catching the problem in time.

The military can even ban soldiers from off-duty, off-post locations...and I think they should in this case....but they'll have to be more proactive in helping troubled soldiers/families.