Military servicemembers, veterans and their families are vulnerable to sometimes unscrupulous lenders for several reasons according to the Consumer Protection Financial Bureau website for servicemembers. Several reasons are cited:
- Lenders are aware that military servicemembers are required to maintain good finances.
- Lenders are confident they can collect because servicemembers are easy to find.
- Lenders are attracted because military pay is a steady income that they can garnish.
- Military families tend to be young and “first time decision makers” when it comes to big purchases.
Petraeus said the number one cause for military security clearance being revoked is now financial problems.
Like many Army posts, just outside Fort Campbell are used car lots, payday lenders and signs advertising special deals for soldiers.
Petraeus said a servicemember’s paycheck may not be big, but it comes every two weeks. Farmer reports that law enforcement officials say for-profit colleges are pushing soldiers into programs harder than ever and payday lenders have found ways around interest rate caps. To read Blake Farmer’s story on Holly Petraeus click HERE.
Filed under: Education, Employment, Military families, Veterans | Tagged: Blake Farmer WLPN, Consumer Financial Protection Bureau Servicemember Affairs, DavidPetraeus, Fort Campbell, Holly Petraeus, military families, Payday loan, postaday2011, United States |