Loan Sharks Prey on Desperate Military Families.

[BurtWorm]

http://www.nytimes.com/2004/12/07/business/07military.html


Seeking Quick Loans, Soldiers Race Into High-Interest Traps
By DIANA B. HENRIQUES

Published: December 7, 2004

...

There are more than 200 of these quick-loan outlets around the Navy bases of Norfolk and Hampton in Virginia; almost two dozen around the Marine Corps base at Camp Pendleton in California; and three dozen within three miles of the Army's Fort Lewis in Washington State.

So the young Navy petty officer and her husband in the Puget Sound area had no trouble finding a willing lender when they wanted to borrow money between paychecks to show visiting relatives a good time.

Getting the loan was fast and convenient, too. To borrow $500, they wrote a $575 check to the lender, to be cashed on their next payday, less than two weeks away. But in accepting that instant loan, the couple, who would talk about their experience only if their identities were not disclosed, were also agreeing to pay a staggering annual interest rate of more than 390 percent. By contrast, a loan from a credit union would have taken several days or longer but cost no more than 18 percent.

Repaying their fast-money loan took a big bite out of the couple's next paycheck, leaving them short when other bills fell due. So they borrowed again, and again, until they had raised about $4,000 through more instant loans, some of them with official-sounding names like Military Financial Network....

[Tandalayo_Scheisskopf]

1. These people are allowed to exist and prosper...

Yet we are vilified by the right.

When is RimJob gonna make something like THIS his interest?

And I don't mean opening up a chain of these places, either.

[depakid]

2. And Republicans OPPOSE EVERY SINGLE EFFORT

To reign in these racketeers on both the national level and in every state legislature across the country- including my own, where bills have been defeated in the last 2 legislative sessions.

Interesting, considering that usury is generally accepted in Christian doctrine to be a sin.

[GreenPartyVoter]

5. The bottom line is the bottom line, folks *sigh*

-------------------------------------
Would Jesus love a liberal? You bet!
http://timeforachange.bluelemur.com/

[fortyfeetunder]

3. Forewarned means forearmed

One military officer I talked with years ago lamented the younger ones who thought they could actually make it with a family if they enlisted in the miltary. His concern was it is possible but a tough life, even with children. He knew of families whose incomes qualified them for Aid to Dependent Children (food stamps). His conclusion was the military income was not really intended for raising a family.

One way to prevent this predatory lending is to provide consumer education to miltary personnel, and particularly to families. Among the ideas should be presented...practical living, budgeting, financial planning, life insurance, those type of things. I'm sure the military is offering these services, but it's another question if these services are being used. Can anyone in the services elaborate?

[BurtWorm]

4. kick