National Guard Loan Fraud
From $500 to $10,000
for All Branches
There are a number of great military loan
deals out there if you are a member of the armed forces. If you are a in the US
Army, Navy, or any other branch, you can land great personal loans at lower
interest rates that can make your life easier. However, the very service to your
country that makes you eligible for such great loans also makes you vulnerable
to bad loans as well.
The general US population is taken for almost three and a half billion dollars
per year in extra fees by payday lending companies. Since these companies have
put together a business model made to reap rewards from repeat borrowers, they
can be classified as predatory. One of their favorite targets are members of the
US armed forces in the form of what they will call US military loans or
sometimes Armed Forces loans.
These companies of found that members of
the USAF, Marines, or even the National Guard are ideal as targets for these
types of loans. You, as a government employee, have a steady income from the US
government and you have a very little to spare in most cases. Then, deployment
time comes, and your family needs money for extra expenses. That is where these
companies step in. They offer your family a quick cash payday loan at a
“military loan” rate. The truth is, though, that they are taking very little off
the rate and are only offering you and your family a loan that will force you to
borrow again down the road to cover the original loan. These places will happily
“roll over” your loan for a fee each week. Eventually you are in a debt trap.
The other thing that makes military personnel vulnerable to these payday loan
traps is that they are often young and inexperienced with money. Then, as debt
builds up, the indebted military personnel are embarrassed to admit their
problem to their CO and end up continuing to borrow and pay only on interest and
roll over fees. They are fearful for good reason, since failing to repay a loan
violates a number of military codes that can result in jail time and or court
marshal.
So what is the answer? Many of these fake military loan companies are being kept
away from military bases. Additionally, they are being forbidden from using
names that imply affiliation with the military, which is a common practice with
these military loan payday check cashing stores.
In the end, it is up to you to beware. It
is a good rule of thumb to simply avoid any payday loan store, but any that
offer special military loans are likely just targeting you or your base for a
cycle of debt you want no part of. If you have financial problems, many bases
are even offering financial advice to young recruits. So ask for help, but avoid
the trap that is payday military loans.
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