Payday and quick cash loans with the Military? How much impact do you think it will have when the law changes?

Effective 1 October 2007 active members of the Military can no longer use "payday" or "quick cash" loan services outside the military bases. Do you think this is going to have a fallout period and a major increase in debt management services for service members by agencies within the military

Payday and quick cash loans with the Military? How much impact do you think it will have when the law changes?
Everybody is right on here, there will be a large impact for a short period of time while all of these "services" they provide us are down and out trying to find a way around the rules. While this is happening, some soldiers who have bills piled up will go in the hole, will cause divorces, and the fallout will suck. I've had to use the loans before, not addictively, but once or twice.


They will be back though, in the form of things like omni loans and pioneer loans (both of which sponsor military events...) and even militaryloans.com. All three of them charge over 25 percent on a loan and I've seen my soldiers hurt for it. It will never change, we've got money, but never enough, and plenty of credit and people to call when we mess up. Around all the posts where you see "buy here pay here" car lots, get adds for "credit approved for all Acitve duty e-1 and up" for almost anything from rims and computers to houses it will never end.
Reply:Forest Gump was right, "stupid is as stupid does." I spent 22 years in the navy. I knew guys who made a fortune slushing loans "$6 for $5" (20% interest) until the next payday. Nothing will change except where they go for their loans.
Reply:That's GOOD news. Those loansharks have been PREYING on members of the military for too many years.
Reply:Sadly, it won't have much impact. I've been in and around the military all my life. There has always been and will always be a market for unscrupulous lenders. They will circumvent the law and find loopholes because our service-members will still desire these services (despite warnning time and time again of the consequences).





Despite the fact that GIs have seen astronomical pay raises since the 80s...they (along with most people in our society) still crave more consumer goods. The collegial environment of the military encourages conspicusous consumption (hey, my buddy has the newest iPhone...I got to get one too and he drives a late-model car with expensive rims.... I gotta get one too...he's got a Harley...I'll get one too.). This is what capitalism is all about...supply and demand. YOung 18 year-olds with money to burn, little responsibility, and little financial savvy...





Don't get me wrong...soldiers should spend their hard-earned money...and they will. But the reality is...the evil is not the pay-day loan sharkers...it's the evils that caused them to need these services (their love of money and all it buys kind of evil).





Bottom line: Teach your sons and daughters fiscal responsbility!
Reply:I think it is a great idea, those places are nothing but loan sharks.


Soldiers can get free budgeting from the military. I know the Army thru the ACS they can work out every last penny you earn. I remember my Sergeant Major telling us in an in brief never ever get the Star card and I'm glad I listened.
Reply:no beacuse 90 precent of bases already have these places on the restricted list anyway. I don't think it will make much of a difference at all.
Reply:Good. These loans generally end up causing people more problems. Most end up paying back way more than originally borrowed.





Fees charged for payday loans are usually a percentage of the amount borrowed or so much for every $100 you borrow. If you extend or "roll-over" the loan, you'll pay additional fees each time. The fee may not sound too bad, but studies show that interest rates on payday loans range from 390% to nearly 900% and that most lenders don't quote accurate interest rates.
Reply:i think most people in the military are smart enough not to use payday and quick cash loans. and even if they aren't i think that it will help them to not get into more debt.
Reply:I guess those companies feel it to much of a risk since the President can send you out to get killed at anytime. Then the quick cash loan companies would not be able to get there money back.