Military Payday Loans

In the last several years, the Federal Government enacted laws that protect the financial interestes of the men and women who serve in the U.S. military (and their families). One of the laws prevents U.S. lenders from issuing short term payday loans to members of the service.

Here's an interesting recent fact from the Department of Defense:

Among junior enlisted members of the military, for instance, 19 percent failed to make minimum credit card payments and 11 percent have bounced checks, according to a survey from the Defense Manpower Data Center. What's more, members of the military use payday loans three times as often as civilians, reports the Defense Department's website. Severe financial problems can cause lost security clearances, sanctions, limited advancement possibilities, or even discharge.

How is this happening? The faxless payday loan providers that we deal with all screen applicants to ensure they are not members of the military. Apparently, other lenders are not taking such steps.