Payday lenders targeting soldiers, debt campaigners warn
Debt campaigners have hit out at companies that target members of the Armed Forces with high interest ‘payday’ loans.
Stella Creasy, the Labour MP for Walthamstow in East London, fears soldiers are becoming a target for payday lenders, which offer short-term loans, often charging sky-high interest rates.
She says: ‘Our Armed Forces make enormous sacrifices for the sake of our security, so it’s only right we give them the protection they deserve at home.’
Figures from the Royal British Legion’s Money and Benefit Advice Service
reveal unsecured personal loans were the top reason for soldiers
contacting the organisation last year.
One company, Easymilitaryloans,
targets soldiers for payday loans of up to £1,500 with no credit checks.
It states even servicemen and women who may have fallen into debt or
bankruptcy can apply. It charges 2,120 per cent interest to some
borrowers.
Until recently, another firm,
Quickquid, had a section dedicated to the military on its website.
However, this has since been removed.
Quickquid charges interest rates of 2,222 per cent to some borrowers. So if you borrowed £50 over a 30-day period, you pay £64.
Neither firm responded to requests for comment.
Liz Dunscombe, of debt charity Credit Action, says: ‘The fact soldiers are in a fixed base means they are also easy to track down.
Pay Day Lending Intrest - News
Several states have imposed curbs on short-term interest for payday loans, and the federal government has similarly restricted interest on loans to military service members. Other religiously affiliated groups opposed to payday lending include the
say short-term loans or "payday loans" can trap people who are already in financial difficulty into an escalation of debt because they are high-cost. The Consumer Action Law Centre says short-term lenders charge effective interest rates of as much
Payday loans with a maximum $300 value in California are granted in exchange for a postdated check. The fees associated with the loans amount to an annualized interest rate of 460 percent for a two-week advance on a pay or benefit check -- rates that
Critics say check-cashing stores make "payday loans" at exorbitant interest rates. The industry wants to boost its lending limit. Critics want tougher regulation. Your views? By Tom Abate Charlotte Whitaker cashes checks for a fee but won't borrow.
By Money Mail Debt campaigners have hit out at companies that target members of the Armed Forces with high interest 'payday' loans. Stella Creasy, the Labour MP for Walthamstow in East London, fears soldiers are becoming a target for payday lenders,
Low Interest Payday Loans: There's No Such Thing | freeay.com
Are you looking for low interest payday loans? If so, you will probably be looking for a long time because payday loans are notorious for their outrageous interest rates. Payday loans were created to fill the need for emergency cash and people in that situation often can’t afford to be concerned with the interest rates on the loan. They are in need of the money, no matter how much it will cost to repay it.
As you can imagine, since there is really no such thing as low interest payday loans, people often get into a financial mess by taking out payday loans. The payday loan has to be repaid in full in a very short amount of time, usually two to four weeks. And since these are not low interest payday loans, there is an additional fee tacked on of around 10%.
Payday loans work like this; you provide the proof to the payday loan company of your identification, banking information, and employment history and then the payday loan company will determine how much money you can borrow. The amount will vary depending upon your income and could be anywhere from $50 to $1000.
The reason people are attracted to these types of payday loans is because there is no credit check and they get the cash money in just a matter of minutes. The problem with the payday loan is that it must be paid back in full, plus interest, on the date of your next payday, and since these are not low interest pay day loans, the fees add up alarmingly fast.
That is very difficult for someone who is in financial distress so what happens to a lot of people is that when payday comes and they pay back the loan, they don’t have any money left over so they have to take out another payday loan and it creates a vicious cycle that is hard to break out of. This happens in part because these are not low interest payday loans.
Legally, a payday loan cannot be renewed; it has to be paid off and then can be taken out again in 24 hours. But by taking it out again in 24 hours which many people are forced to do, it makes the interest on the loan skyrocket.
Pay Day Lending Intrest - Bookshelf
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