The Pullins Report (TPR) - Payday Lenders Target Our Troops
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Categories: Action Alerts, Consumer and Worker Protection, Corporate Accountability / Workers' Rights
Categories: Action Alerts, Consumer and Worker Protection, Corporate Accountability / Workers' Rights
In 2005, I was hired by the DCI Group, LLC and the Concerned Veterans Communications Coalition to work on military payday lending issues. Our goal was to have then Attorney General Jim Petro investigate claims that these payday lenders were violating Ohio's Consumer Protection Statutes. He declined to undertake this investigation. I later learned that Ohio payday lenders were some of his largest campaign donors.
That was unfortunate, in Ohio and across the nation these companies are targeting vulnerable military families. Here's an AP article that describes one soldiers experience.
WASHINGTON (AP) -- Army Chief Warrant Officer Thomas Burden needed money. He had just been through a divorce, his credit was bad and he couldn't qualify for a conventional loan. So he turned to a payday lender - one of dozens within a mile of his base at Fort Hood, Texas. Thus began a vicious cycle of getting quick cash advances at high interest rates.
His first $300 loan cost a fee of $60 every two weeks. More loans and fees at the equivalent of 520 percent interest per year soon swelled the debt to more than $1,400.
"It just kind of keeps snowballing if you don't have the money to cover it," said Burden, 35.
Payday lenders set up shop just outside of military bases under deceptive trade names like Military Lending, Armed Forces Financial, and so on. Young spouses believe they are dealing with official government agencies when borrowing funds.
A bipartisan group of Ohio legislators are expected to soon introduce legislation to rein in these out of control companies. This legislation is long overdue and needed to protect our fragile military families. Ohioans of all political stripes should join together in supporting this important bill. Thank you.
Scott Pullins, Esq.
Publisher,
The Pullins Group
That was unfortunate, in Ohio and across the nation these companies are targeting vulnerable military families. Here's an AP article that describes one soldiers experience.
WASHINGTON (AP) -- Army Chief Warrant Officer Thomas Burden needed money. He had just been through a divorce, his credit was bad and he couldn't qualify for a conventional loan. So he turned to a payday lender - one of dozens within a mile of his base at Fort Hood, Texas. Thus began a vicious cycle of getting quick cash advances at high interest rates.
His first $300 loan cost a fee of $60 every two weeks. More loans and fees at the equivalent of 520 percent interest per year soon swelled the debt to more than $1,400.
"It just kind of keeps snowballing if you don't have the money to cover it," said Burden, 35.
Payday lenders set up shop just outside of military bases under deceptive trade names like Military Lending, Armed Forces Financial, and so on. Young spouses believe they are dealing with official government agencies when borrowing funds.
A bipartisan group of Ohio legislators are expected to soon introduce legislation to rein in these out of control companies. This legislation is long overdue and needed to protect our fragile military families. Ohioans of all political stripes should join together in supporting this important bill. Thank you.
Scott Pullins, Esq.
Publisher,
The Pullins Group
