thedrifter
05-24-06, 06:39 AM
Military targeted by lenders, officials say
By Don Thompson
ASSOCIATED PRESS
SACRAMENTO - High-interest lenders clustered around Southern California's military bases target young soldiers, sailors, Marines and airmen, causing not only financial harm but jeopardizing the nation's fighting readiness, military officials told state lawmakers Tuesday.
The officials want changes to California's payday lending, lemon vehicle and other laws to help members of the military. At an average age of 19, many recruits are seeing their first steady paycheck without having experience in loans and other financial transactions, the officials said.
Some insurance vendors employ former members of the military to sell current members life insurance they don't need, the officials said. Other businesses offer upfront cash in exchange for a claim on future pension benefits, credit experts said at a hearing.
"They prey on our young when they're most vulnerable," said Sgt. Maj. Wayne Bell, who spoke on behalf of the commander of Camp Pendleton-based Marine Corps Installations West, which consists of 65,000 Marines and sailors at seven California and Arizona bases.
A top reason members of the military can't deploy overseas is because indebtedness affects their security clearances, said Captain Mark Patton, commanding officer of Naval Base Point Loma.
The number of revoked security clearances has increased 1,600 percent since 2000, Patton told the Joint Committee on Boards, Commissions and Consumer Protection. Patton heads the military's regional payday loan task force that is trying to discourage their use and help 90,000 active duty sailors in California find alternatives.
There is not much lawmakers can do to combat legal lenders, said the committee's chairwoman, Sen. Liz Figueroa, D-Fremont. But she said she would work to extend California's lemon law protections to troublesome out-of-state vehicles purchased by members of the military who are then transferred to California bases. Currently, the law requires refunds only if the poorly constructed vehicle is purchased in California.
The California hearing comes amid similar efforts by military leaders in other states. Last week, the Government Accountability Office, Congress' investigative arm, said the Defense Department needs to do more to help with the financial needs of those in the military.
Ellie
By Don Thompson
ASSOCIATED PRESS
SACRAMENTO - High-interest lenders clustered around Southern California's military bases target young soldiers, sailors, Marines and airmen, causing not only financial harm but jeopardizing the nation's fighting readiness, military officials told state lawmakers Tuesday.
The officials want changes to California's payday lending, lemon vehicle and other laws to help members of the military. At an average age of 19, many recruits are seeing their first steady paycheck without having experience in loans and other financial transactions, the officials said.
Some insurance vendors employ former members of the military to sell current members life insurance they don't need, the officials said. Other businesses offer upfront cash in exchange for a claim on future pension benefits, credit experts said at a hearing.
"They prey on our young when they're most vulnerable," said Sgt. Maj. Wayne Bell, who spoke on behalf of the commander of Camp Pendleton-based Marine Corps Installations West, which consists of 65,000 Marines and sailors at seven California and Arizona bases.
A top reason members of the military can't deploy overseas is because indebtedness affects their security clearances, said Captain Mark Patton, commanding officer of Naval Base Point Loma.
The number of revoked security clearances has increased 1,600 percent since 2000, Patton told the Joint Committee on Boards, Commissions and Consumer Protection. Patton heads the military's regional payday loan task force that is trying to discourage their use and help 90,000 active duty sailors in California find alternatives.
There is not much lawmakers can do to combat legal lenders, said the committee's chairwoman, Sen. Liz Figueroa, D-Fremont. But she said she would work to extend California's lemon law protections to troublesome out-of-state vehicles purchased by members of the military who are then transferred to California bases. Currently, the law requires refunds only if the poorly constructed vehicle is purchased in California.
The California hearing comes amid similar efforts by military leaders in other states. Last week, the Government Accountability Office, Congress' investigative arm, said the Defense Department needs to do more to help with the financial needs of those in the military.
Ellie