U$ Capitalist target idiot Soldiers for Payday Loans ...?
U$ Capitalist target idiot Soldiers for Payday Loans ...?
ATLANTA (AP) -- The military warned Wednesday that the illegal payday loan
industry in Georgia is preying on young sailors and soldiers, endangering their
morale and combat readiness by offering ready money at high rates that can lead
to financial disaster.
At a legislative hearing on the issue, Capt. John Cohoon, commanding officer of
the Kings Bay submarine base, said payday lenders line the road to his base
because they consider young sailors and Marines "ripe targets" for the
short-term loans which pack an interest-rate wallop.
One of his sailors, Petty Officer 2nd Class Jason Withrow, said his first payday
loan created a "vicious cycle" in which he had to get still more loans to keep
up with the bills and paid $7,000 in interest, with still more owed, on loans
totaling $2,000.
Lt. Col. Russ Putnam, a lawyer for the 3rd Infantry Division at Fort Stewart,
said payday loans are a growing problem at that base, too.
"This is a readiness issue for us," he said. "The last thing any of us need is
to have a young soldier who should be learning to shoot the tank gun ... be
distracted by their problems with a payday loan."
Aside from the emotional stress of dealing with debt collectors, soldiers and
sailors who don't pay debts face the threat of possible court martial, he said.
"When we lose those people because of payday check cashing they're as good as
dead to us. They are gone," he said.
The testimony came before the state House Banks and Banking Committee, which is
reviewing a Senate-passed bill that would stiffen the penalties for making
payday loans -- short-term, high-interest cash advances that use a customer's
next paycheck as security.
The industry makes its biggest profits when customers can't repay their
short-term loan, as most can't, and have to renew them time and again.