This is the latest story according to the USA Today. Apparently, millitary service men and women are among the most likely groups to incur high fee, high interest payday loans. Among the taboos of personal finance, many of us in the blogosphere bemoan credit card debt, three dollar lattes, and failure to contribute to 401(k)s. But it is clear that payday loans rank right at the top of the list of the ignorant, self destructive moves that anyone can make.
For millitary personnel it goes beyond the triple digit interest rates and fees, but all the way to their security clearance and eligibilty for deployment.
Worst of all, the practice continues to be defended by the payday loan association, which goes by the generic sound name, Community Financial Services Association of America.
Get a load of this exerpt from the USA Today article:
That's a misguided critique of a valuable service, says Darrin Andersen, president of the Community Financial Services Association of America, the payday lenders' trade group. The Pentagon, he says, "is in over its heads when it comes to ... complex personal finance and lending issues."
It's really not that complex. Usurous triple digit interest rates are tantamount to Mob like Loan Shark tactics. They should be illegal.
By the way, feel like spoiling your lunch? Browse the site of the Payday Lender's trade group. Oh, and they refer to it as the "Deferred Presentment" industry.