Naval Captain Disparages Military Payday Loan Use; Lays Out Plan of Attack
By J.J. CameronPayday Loan Writer
Capain Mark Patton, commanding officer of Naval Base Point Loma, has a major problem with the recent influx of military payday loan lenders.
"This is a relatively new problem, relative being within the last five years," he said. "These businesses are multiplying because they are making tremendous profits off of our sailors. It's estimated last year that payday loans took $80 million out of the pockets of our active duty sailors and their families. That is unacceptable."
Pattone gave examples of harmful payday loan data in his testimony on predatory lending in front of the California State Senate Joint Assembly.
"A service member saddled with debt, fear, and considerable stress could suddenly find his integrity compromised," Patton told the assembly. "His job performance will probably suffer, and he most likely will lose his security clearance and be temporarily removed from his assignment. Between 2000 and 2005, revoked or denied security clearances for sailors and marines due to financial problems have increased 1,600 percent."
Patton recommended a three-pronged attack against these military payday loans:
- Training: Word must be spread to sailors concerning the dangers of payday loans
- Culture: Research must be conducted to find out why a sailor uses a predatory cash loan lending establishment over other assets like credit unions and financial services.
- Partnerships: Actually team up with payday loan companies work on strategies that satisfy all parties.
Patton said one of the most important things sailors can do to help with this problem is to be upfront about their negative experiences with cheap payday loan shops or other predatory businesses.
"We need Sailors to come forward and tell us their stories of when they've been taken advantage by these organizations," he said. "Sometimes it's embarrassing; sometimes they may not be comfortable in doing so. But they're helping out not only themselves but their shipmates."
