Armed Forces Educate Military Personnel Against High Interest Loans

RANCHO CUCAMONGA, Calif., Aug. 12, 2013 /PRNewswire/ -- The Military Lending Act (MLA) exists to protect members of the Armed Forces from borrowing payday loans and other high-interest debt, but its effectiveness has been a topic of debate for years.

While some consumer activists have sought an expansion of the MLA, several military insiders say that the Armed Forces already has sufficient payday loan education to safeguard personnel from indebted situations.

LINK: http://loans.org/payday/news/military-insiders-say-education-sufficient-92945

The MLA was enacted by Congress to limit the interest rate that can be charged to military personnel. It also set restrictions on how close storefront lenders could be located to military bases and installments. Early supporters of the MLA cited the fact that the military lacks the financial education necessary to borrow money responsibly, and thus they were targeted by predatory lenders.

But one retired Navy submarine lieutenant commander said expanding the MLA would cause more harm than good.

"We already have decades of experience with command financial specialists, required annual training on financial responsibility, financial advisers at military base family support centers, and all of the military relief organizations," he said. "We can't lay yet another training requirement on them."

Another former Infantry Officer said that the problem with managing one's finances has little to do with formal education since  even college educated officers succumb to the same financial pitfalls as their soldiers.

Finally, one wife of a retired Air Forces fighter pilot said that instead of expanding protections, we should focus on encouraging service members to make use of those that already exist.

"The problem is that the military members do not take advantage of the resources available," she said.

This full article, along with commentary from other military insiders, can be found at  http://loans.org/payday and is accessible by clicking on "articles" at the top of any page on the website.

About loans.org:
loans.org is a leading lending authority website that covers financial news, produces informative articles, and answers frequently asked questions. In addition to providing lending-related information, loans.org also hosts a variety of free online application forms for prospective borrowers to use when applying for loans.

CONTACT: 
Isaac Juarez
909-784-2467
[email protected]

SOURCE Loans.org, LLC

WANT YOUR COMPANY'S NEWS FEATURED ON PRNEWSWIRE.COM?

440k+
Newsrooms &
Influencers

9k+
Digital Media
Outlets

270k+
Journalists
Opted In

GET STARTED