Navy Continues Push Against Payday Loans
By Paul RizzoPayday Loan Writer
The Department of the Navy is continuing to fight payday loans through raising awareness of predatory lending and informing both sailors and their families about the pitfalls of dangerous debt cycles.
According to Keith Goosby, Financial Coordinator for Regional Support Office Task Forces in San Diego, Calif., predatory online payday loans may be putting sailors in financial peril, not only affecting their job performance, but in some cases jeopardizing security clearances.
"Overall readiness of the Navy is impacted when financial aspects of personnel are not what they should be. Additionally, shipmates are impacted when they have to deploy because of someone else's lack of financial readiness," Goosby said.
Francis H. Dong, Associate Director of the National Association of Securities Dealers, said that 75 percent of no faxing payday loan customers are unable to repay their cash advance in two weeks, the normal length of a loan. Dong also said active duty members are three times more likely to use a predatory lender than are civilians.
"Predatory loan centers target active-duty with tricks like special military loans. Military personnel are their best clients, because they know they're paid every two weeks," Dong said.
Along with impacting fellow shipmates, financial readiness can affect performance at work.
"Sailors who find themselves caught up in predatory lending can lose focus on the job, which in many cases can be very dangerous, because their minds are on personal issues, not on the mission their job requires," Goosby said.
According to Capt. Mark Patton, commanding officer of Naval Base Point Loma in San Diego, the number one reason why some Sailors cannot deploy to support the global war on terrorism is lack of security clearance, caused by financial troubles. For this reason, military payday loans have become a gigantic problem for officials.
"Developing a realistic spending plan, living within your means and not spending more than you make, are probably the best things sailors can do to put themselves on the road to financial security," he said.
