Predatory lendors target military servicemembers

[Luke_Wilbur]

Predatory lenders who target our nation's military servicemembers have "sprung up by the thousands around military bases," causing up to one in five — over 175,000 military personnel — to become victims of astronomical interest rates. According to a new Pentagon report, predatory lenders "seek out young and financially inexperienced borrowers who have bank accounts and steady jobs, but also have little in savings, flawed credit, or have hit their credit limit. These borrowers are less likely to weigh the predatory loan against other opportunities and are less likely to be concerned about the consequences of taking the loan." These "payday loan" centers give out an average loan of $350 that carries "an annual interest rate of 390% to 780%," often forcing borrowers to "pay another high fee to roll over the loan for an additional two weeks or take out another loan to pay off the first loan." This process traps them "in a costly and often devastating cycle of 'back-to-back.'" The problematic effects of such high-interest loans extend beyond the individual servicemembers and their families. In 2005, even as the military faced recruiting problems because of the Iraq War, "the Navy and Marine Corps denied security clearance to about 2,000 service members nationwide" because of "concern that their indebtedness could compromise key operations." The Defense Department even listed predatory lending as "one of the top 10 threats to members of the military."

[Human]

Isn't this practice called “LOAN SHARKING?” and it seems that if necessary that greater funds be made available for prosecutors to prosecute these types of cases.

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Predatory lenders who target our nation's military servicemembers have "sprung up by the thousands around military bases," causing up to one in five — over 175,000 military personnel — to become victims of astronomical interest rates. According to a new Pentagon report, predatory lenders "seek out young and financially inexperienced borrowers who have bank accounts and steady jobs, but also have little in savings, flawed credit, or have hit their credit limit. These borrowers are less likely to weigh the predatory loan against other opportunities and are less likely to be concerned about the consequences of taking the loan." These "payday loan" centers give out an average loan of $350 that carries "an annual interest rate of 390% to 780%," often forcing borrowers to "pay another high fee to roll over the loan for an additional two weeks or take out another loan to pay off the first loan." This process traps them "in a costly and often devastating cycle of 'back-to-back.'" The problematic effects of such high-interest loans extend beyond the individual servicemembers and their families. In 2005, even as the military faced recruiting problems because of the Iraq War, "the Navy and Marine Corps denied security clearance to about 2,000 service members nationwide" because of "concern that their indebtedness could compromise key operations." The Defense Department even listed predatory lending as "one of the top 10 threats to members of the military."

[Human]

What are the other 9 threats to the Military?

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Isn't this practice called “LOAN SHARKING?” and it seems that if necessary that greater funds be made available for prosecutors to prosecute these types of cases.

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