Predatory Lenders and Texas Legislators Still Taking Advantage of Military Veterans

[TexasTowelie]

By Carol Morgan

America will witness a lot of speeches and flags, free dinners and ceremonies to honor our veterans today. Our democratically-elected opportunists will be there too, obtaining plenty of free political mileage. Unfortunately, after the speeches and photo-ops are over, the brave men and women of our armed services will be out of sight, and out of the minds of those who govern.

In addition to low pay, inadequate medical treatment and few career opportunities upon their return, veterans and their families have another problem to contend with that’s not being addressed by our legislators, especially in Texas.

Predatory lenders and rent-to-own businesses have specifically targeted military veterans as some of their most valued customers by setting up office right outside of military bases. The Military Lending Act of 2006 was designed to stop this egregious practice, but the parasitic credit finance industry discovered ways to circumvent the law, by offering longer term loans or loans over $2000, which is not prevented by the MLA.

A Wall Street Journal piece elaborated on the flagrant abuses of finance companies that sometimes lead to disciplinary action or even a military discharge. Veterans don’t deserve this kind of robbery. Even the proposed cap of 36 percent interest is outrageously high, but a vast improvement over loans of 285 percent which effectively guarantee that the loan is never paid off; income for life for predatory lenders.

Little has been done in Texas to tamp down the viral contagion of rent-a-centers, car-title loans, and payday lending that keep people in perpetual debt.

The Texas Legislature has been kicking the can down the road to cities like Dallas, San Antonio, and Houston, forcing them to craft local ordinances to deal with the problem because they refuse to do so.

Perhaps, it’s the huge donations that the loan sharks give to legislators (or even Governors—predatory lenders loved Abbott to the tune of a quarter million in donations) or maybe it’s because there are legislators who made their millions from this unethical industry.

Republican House member Gary Elkins, who owns a long chain of predatory lending stores all across Texas, is facing prosecution in two different cities for his refusal to abide by the law.

Last week, in spite of his legal transgressions, Representative Elkins was handily re-elected to District 135.

Oh, and just a side note, former Republican Representative Vicki Truitt is now a lobbyist for Ace Cash Express.

These people have no shame.

In September, the Department of Defense announced a proposed overhaul of the MLA and they are still accepting comments and feedback.

So perhaps, a good way to honor all veterans is by adding your comments on the DOD Electronic Public Inspection desk at this link: http://tinyurl.com/pb8ar8y or adding your name to the list at Public Citizen.

These companies and their legislative partners need to feel the wrath of the citizens. To prey on veterans is a despicable act, even for a politician.

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Carol Morgan is a career/college counselor, writer, speaker, former Democratic candidate for the Texas House and the award-winning author of Of Tapestry, Time and Tears, a historical fiction about the 1947 Partition of India. Email Carol at [e-mail] , follow her on Twitter and on Facebook or visit her writer’s blog at www.carolmorgan.org

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[KT2000]

1. Good idea - done! n/t