The 900-Percent Ripoff
lures young military families into his stores with an offer to “give” them
$50 in cash for each $15 purchase. All they have to do is pay back the
“gift” next payday, with a bit extra for his trouble, of course – about
$20 for every $50.
the math: For payday fifteen days away, that’s 900 percent annual interest!
know, a sucker is born every minute. But put this into perspective. For the most
part, these are families of soldiers at war in
Charles Schumer, D-NY, is urging the Federal Deposit Insurance Corp. to close
the loophole that allows lenders to partner with banks to offer loans with
excessively high interest rates. Eventually, this may stop the payday
loansharking operations they prey on young military families.
In the meantime, however, military members and their families everywhere should stay away from these parasites. Military credit unions offer a fine alternative at reasonable rates to any service member strapped for cash, and they help members get their finances in order so they no longer run out of cash before they run out of month.