I don't even know where to start with this story. But I'll give it a shot: basically loans sharks, legal ones, have set up shop outside of military bases around the country preying on families of soldiers and the soldiers themselves who are serving our country. The consequences of these lending practices have led to a shortage of troops for overseas deployment.
So, how do the loan sharks get away with it?
Lenders typically charge $15 to $25 per $100 loan for two weeks, and most loans are extended for several weeks. The report says the average loan is $350 and has an annual interest rate of 390% to 780%. The average borrower, it says, pays back $834 for a $339 loan.
We know Bush won't do anything about it but what is Congress doing?
Congress ordered the Pentagon to conduct the lending study. This year, the Senate passed an amendment to its annual defense spending bill that calls for a 36% cap on interest for loans to servicemembers. . . The House version of the defense bill doesn't include the amendment. A joint committee will begin working out differences between the two versions next month.
But wait, one Republican Congressman, Geoff Davis (R-Visa) is trying to gut the amendment:
Rep. Geoff Davis, R-Ky., is fighting a proposal to cap high interest rates for short-term payday loans to military service members at 36 percent, drawing protests from consumer watchdogs and military groups. . . An aide to Davis yesterday said the congressman has consulted CNG Financial of Mason, Ohio, one of his top campaign donors and owner of national payday lender Check 'n Go.
What next, higher deductibles for soldiers injured in Iraq?


Comments: 23
The public certainly seems not to give a damn that these families could use some reasonable benefits and the Congress has been too often anti-military, mainly liberals of both parties. During my career when Congress was under Democrat control, Congress steadily year after year reduced benefits. What we had in the '50s had all but disappeared by the mid '70s. The military is doing better now, but the "living wage" I hear so much here on Gather re Wal-Mart has never been applied to the military. While the families of 9/11 victims got hundreds of thousands, the military dead got very little though it has now been increased.
Best regards, Ben
Author "Leading People to be Highly Motivated and Committed"
Judging by the slant you put on it, I guess this must be a plot by one party(which might it be?!?) Donald has it right, even Romans complained of such practices. Joe is told about it and has other resources for emergency aid instead of loan sharks. Anyway, nice to see you "supporting" Joe now, try not to forget them if your party wins control of the House or Senate- that money instead could really buy some serious votes from the 'needy'.
The bottom line is this: if we expect to have a world class military the men and women in uniform have to be paid top-notch or why should they volunteer? There is nothing political about that. It's a duty. Not politics.
Terrorism & Security
posted August 23, 2006 at 11:30 a.m.
'Backdoor draft'?
'Critical shortage' prompts involuntary recall of reservists by US Marines.
By Tom Regan | csmonitor.com
In a move that critics denounce as a 'backdoor draft," the US Marines and Army are recalling to active duty thousands of men and women who have been discharged for several years. According to the Associated Press, thousands of Marines are being recalled because of "a shortage of volunteers" to serve in Iraq and Afghanistan.
And as for the predatory lending practices targeting our military families, it is a real danger.
Here is an excerpt from an excellent article posted today on Realty Times, I added the link below the comment:
Pentagon Opens War Against Predatory Lending
by Broderick Perkins
"...the Pentagon remains on high alert because, the report says, "Predatory lending undermines military readiness, harms the morale of troops and their families, and adds to the cost of fielding an all volunteer fighting force ... . Financial issues account for 80 percent of security clearance revocations and denials for Navy personnel."
http://realtytimes.com/rtcpages/20060815_pentagonlending.htm
Best regards, Ben
Author "Leading People to be Highly Motivated and Committed"
If it wouldn't pass, why do so many people pretend they "Support The Troops?"
Those kinds of programs cost money. They aren't free. I'd be happy to see some of my taxpayer money go to that, as opposed to an Osprey Project that's been a joke and a waste of money. There are solutions here. But, it seems to me that a Yellow Sticker on a car is a lot easier than participating in our democracy.
So, here are some facts for you: Democratic Senators Push for Military Pay Increase That Exceeds Bush's Proposal.
Ten Democratic senators are urging the Senate Budget Committee to provide military personnel with a 2007 pay raise higher than the 2.2 percent increase proposed by the president.
From Stars and Stripes:
Troops decry budget office's plan to trim military pay hikes in 2004
The director of the White House Office of Management and Budget, Mitchell E. Daniels Jr., recently asked the Defense Department to lower the 2004 pay raise from its expected 3.7 percent to 2 percent.
Those are just two articles of thousands.
Just for the record, Foreign policy: I have a masters in International Relations. I speak Russian, English, Spanish, a bit of Chinese, read and write Latin, Ancient Greek and am learning Farsi. I have a BA in History as well. And have traveled in more than 35 countries, including Central Asia.
When it comes to economics: I worked in global finance--for a very large and profitable investment bank and asset management for ten years.
I imagine I know how market economies work.
Airman Allen, I didn't start this debate to be rude, and I try not to be rude or use ad hominem attacks on people while I debate. I would hope that you would reciprocate.
But the higher you went up the scale to the officer ranks, the greater the percentage of increase. I do not remember the numbers, but say it was 7% for them. Multiply that out against their already much higher base pay and you can see who gets the real increase.
Now do this consecutively over the years, and you will see how the rich get richer and the poor get poorer.
Now as far as people supporting the military, there are alot of care packages being sent out there to our troops, people stop my son in the airports and will buy him a drink at the bar, or just shake his hand and say thank you. They even tell me his mom thank you for your sacrifice. So i do believe that people care, the govt is another issue, they all been too rich too long, and too comfortable to know how to start caring. Make it where a poor person can actually run for office..and i will run!!! I need a raise in income and no one tells me what to think i listen to all sides and make up my own mind from what i see and hear!!!
Some of these people are really genuinely patriotic, but far too many are nationalistic and grateful to the troops only because they are genuinely fearful, very thankful for the protection over there, rather than here in their own backyards.
Most will vote for the present administration to go the course, whatever it takes. It is very politically correct for these types to make their token comments of appreciation to their protectors, because they really have come to believe that that is the only reason they can sleep at night. And those of us that would protest war in general, are just considered code-pinkers, that should be run out of the country. All they need is a word of authorization from their exalted leaders and they will gladly don their brown-shirts and be rid of us troublemakers.
But their government leaders can do no wrong in comparison. These folks do not seem to mind their sacrifice for the rich, as they and theirs get poorer or killed.
What has this got to due with loan sharking ? I do not know, maybe nothing. Just expressing my views.
I know that as hard up as I was at times in my younger years, I knew better than to involve myself with those off base lending institutions. I did borrow on occasion from the private slush funds aboard ship when going into an overseas liberty port too far past payday. The interest rates were extremely high, but every bit worth it, all things considered. 20$ went a long way then, especially at the exchange rate of 360 Yen to the dollar... and no one seemed to hate us or shoot at us then.
We warn people about them, but we also see that they are in the same situation we were once in. Army emergency loans are a joke to inquire about. So, I can see why they will still be used.
I would agree that they need to go, some posts even went so far as to say that if you are caught using one of the places, you will get an article 15. I don't know if that rule still stands.
I thank you for your support and for bringing this to many peoples eyes.
2008 Base Pay Scale