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Old 12-18-2018, 08:09 PM
 
5,307 posts, read 1,508,382 times
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This surprised me, from an article about the CFPB.


The Rapid Decline of the Consumer Financial Protection Bureau
Trump’s pick to protect consumers is throwing students and members of the military under the bus
The Nation
By George ZornickTwitter

Members of the military and veterans are uniquely vulnerable to loan sharks and scams. Roughly half of the United States’ active-duty service members are under 25, and the military provides many of them with their first regular paycheck... In military towns with a high population of young people far from home and in need of credit, financial predators—particularly payday lenders and automobile-financing firms—are eager to swoop in. The Defense Department has found that service members are four times as likely as civilians to be targeted by unscrupulous lenders.

The situation also poses a national-security risk. The Defense Department has found that financial turmoil has a demonstrable effect on military readiness and morale.

For the complete article:
www.thenation.com/article/why-loan-sharks-car-salesmen-and-payday-lenders-love-mick-mulvaney/
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Old 12-19-2018, 09:29 AM
 
18,590 posts, read 10,185,265 times
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When I was in DC in the late 80s, Bolling AFB had a base regulation requiring all members--of any rank--to run all auto purchase contracts through the base legal office. Even the legitimate dealers were running incredible scams.
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Old 12-19-2018, 09:49 AM
PFM
 
Location: Endicott, NY
110 posts, read 106,001 times
Reputation: 254
Any military installation has a strip not too far out of the gates that is dedicated to taking an E1-3's paycheck. Strip clubs, used car lots, payday loans, military surplus (Gee, who knew it was wrong to sell your TA-50), tattoo shops, and you name it - the sky is the limit. Almost a rite of passage to sign for a very high percentage car loan or marry a stripper when you're young, dumb, and full of . That's what your NCOs were there for - to try to dissuade you, and clean up the mess afterward. Been like this for decades and decades, will probably do so for more.
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Old 12-19-2018, 10:18 AM
 
Location: Hawaii/Alabama
1,641 posts, read 3,020,264 times
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Back in the day there were always car lots with signs or banners "We Finance E1 and Up!" Or credit cards "Easy Credit: just show us your LES!"

Young Servicemembers flocked to these places and bought cars or TV and sound systems to crowd into their barracks rooms. The problem grew larger with marriage as they finance a second car and furniture for qtrs.

There was also the old joke about "How can I have bounced checks? I still have some in my checkbook!".

Even though we had a finance guy come and teach a class the first week of Basic there were privates hauled into the 1SG's office for bouncing checks at the PX and on the economy.

When DH became a plt Sgt and then a 1Sgt he spent a good chunk of the time counseling and disciplining soldiers for their financial disasters.

When our boys were old enough for employment we had them take the ACS finacial readiness classes. Young people, a steady income and easy credit often do not mix well.
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Old 12-19-2018, 10:20 AM
 
5,131 posts, read 6,170,027 times
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Quote:
Originally Posted by Clarallel View Post
This surprised me, from an article about the CFPB.


The Rapid Decline of the Consumer Financial Protection Bureau
Trump’s pick to protect consumers is throwing students and members of the military under the bus
The Nation
By George ZornickTwitter

Members of the military and veterans are uniquely vulnerable to loan sharks and scams. Roughly half of the United States’ active-duty service members are under 25, and the military provides many of them with their first regular paycheck... In military towns with a high population of young people far from home and in need of credit, financial predators—particularly payday lenders and automobile-financing firms—are eager to swoop in. The Defense Department has found that service members are four times as likely as civilians to be targeted by unscrupulous lenders.

The situation also poses a national-security risk. The Defense Department has found that financial turmoil has a demonstrable effect on military readiness and morale.

For the complete article:
www.thenation.com/article/why-loan-sharks-car-salesmen-and-payday-lenders-love-mick-mulvaney/
That is why they call them 'gate towns' filled with bars pawn shops loan shops etc and all sorts of scam businesses. Always been that way. That is why some are on the post 'black list'.

and yes, young soldiers and decent paychecks where the $ got spent on booming stereo systems and flashy fast cars. all else was paid for so it became so tempting
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Old 12-19-2018, 10:43 AM
 
Location: Murrica
2,444 posts, read 1,479,272 times
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Quote:
Originally Posted by melaniej65 View Post
When DH became a plt Sgt and then a 1Sgt he spent a good chunk of the time counseling and disciplining soldiers for their financial disasters.
When the scam artists would call me when Joe Snuffy didn't pay, I'd always say, "Did you call me before you gave them a loan? Nope? Then leave me the hell alone."

Fort Riley had a Division CSM retire and go to work for a predatory lender. He'd always "accidentally" throw in his rank. Telling him to pound sand was always fun.
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Old 12-19-2018, 02:07 PM
 
13,326 posts, read 12,418,199 times
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Military members, specifically the new, enlisted ones, have always for as long as I known, been vulnerable, targeted, and a victim of all kinds of scams.
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Old 12-19-2018, 02:26 PM
 
18,590 posts, read 10,185,265 times
Reputation: 18253
Quote:
Originally Posted by Clarallel View Post
This surprised me, from an article about the CFPB.


The Rapid Decline of the Consumer Financial Protection Bureau
Trump’s pick to protect consumers is throwing students and members of the military under the bus
The Nation
By George ZornickTwitter

Members of the military and veterans are uniquely vulnerable to loan sharks and scams. Roughly half of the United States’ active-duty service members are under 25, and the military provides many of them with their first regular paycheck... In military towns with a high population of young people far from home and in need of credit, financial predators—particularly payday lenders and automobile-financing firms—are eager to swoop in. The Defense Department has found that service members are four times as likely as civilians to be targeted by unscrupulous lenders.

The situation also poses a national-security risk. The Defense Department has found that financial turmoil has a demonstrable effect on military readiness and morale.

For the complete article:
www.thenation.com/article/why-loan-sharks-car-salesmen-and-payday-lenders-love-mick-mulvaney/
And, oh, yeah, it does affect military readiness.

Of course, sometimes the military shoots itself in the foot, as when the Air Force decided to issue AMEX cards to all troops instead of paying direct advanced allowances for their TDYs.

"Just tell your airmen they aren't allowed to use their AMEX cards unless they're actually on TDY, and only for TDY expenses."

We senior NCOs just palmed our faces.
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Old 12-19-2018, 04:12 PM
 
690 posts, read 190,923 times
Reputation: 1666
You forgot diamond rings marketed to soldiers!

I'm not military but was once in San Diego on business and picked up a copy of "Stars and Stripes". There was a VERY elementary article on personal finance but I figured the writer knew his audience. I remember a caution not to allow an arrangement that let the merchant get a direct assignment of monthly payments out of your paycheck. (This was several years ago; I hope that's not an option now.) It was really sad- if I read between the lines, the marketers knew they had a captive group of people who had their basic expenses paid and who may have had a steady stream of discretionary income for the first time in their lives and were pretty naive. Sad that they'd take advantage of people who were putting their lives on the line.

There were plenty of ads for cars and diamond rings.
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Old 12-19-2018, 04:36 PM
Status: "Tinsel, not just for decoration" (set 3 days ago)
 
Location: North Beach, MD on the Chesapeake
32,549 posts, read 39,917,881 times
Reputation: 41208
Quote:
Originally Posted by Clarallel View Post
This surprised me, from an article about the CFPB.


The Rapid Decline of the Consumer Financial Protection Bureau
Trump’s pick to protect consumers is throwing students and members of the military under the bus
The Nation
By George ZornickTwitter

Members of the military and veterans are uniquely vulnerable to loan sharks and scams. Roughly half of the United States’ active-duty service members are under 25, and the military provides many of them with their first regular paycheck... In military towns with a high population of young people far from home and in need of credit, financial predators—particularly payday lenders and automobile-financing firms—are eager to swoop in. The Defense Department has found that service members are four times as likely as civilians to be targeted by unscrupulous lenders.

The situation also poses a national-security risk. The Defense Department has found that financial turmoil has a demonstrable effect on military readiness and morale.

For the complete article:
www.thenation.com/article/why-loan-sharks-car-salesmen-and-payday-lenders-love-mick-mulvaney/
Ya know, not everything is Trump's fault. Unless he was President almost 40 years ago when we were cautioned about going out and immediately buying an Ensign car right after we got commissioned.
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