Article Espouses Military Payday Loan - AND Regular Cash Advance - Restrictions
By J.J. CameronPayday Loan Writer
There's no doubt military payday loans are dangerous and should be regulated.
So argues a recent article in The Union-Bulletin. Because Navy regulations stipulate that those whose debts are more than 30 percent of their income cannot be sent abroad (due to concern it will distract them from their duties and make them more vulnerable to bribery), it's logical that payday loans that are known to cause said debt should be dealt with appropriately.
The commanding officer at the Navy's San Diego base said the number of sailors and Marines barred from deployment because of financial problems has climbed 1,600 percent since 2000. During this time, the use of resources such as online payday loans has also risen.
The newspaper is in favor of capping interest rates on cash advances, such as The Pentagor recommends, but asks:
- What about the rest of America?
Why shouldn't civilians who are in financially vulnerable positions be protected from faxless payday loan sharks? We don't advocate outlawing payday loans. While these loans are a rotten way to get some fast cash - other lower-interest avenues should always be pursued first - some people have limited options because of poor credit.
But the Washington publication would endorse a reasonable nationwide interest-rate cap on these loans. Twelve states already bar triple-digit, non low fee payday loans and many others have established higher caps.
The members of Congress should take action to protect those serving in the military from being gouged. And, while they're at it, they should protect the rest of us too.
