Most recently, cash advance companies have begun to target military personnel along with their families. Military personnel along with their families are particularly at risk of payday advance companies because their lives are disrupted by the changes in living conditions and in pay. When a new military recruit heads off for basic training, heaving his or her family behind, the income generated through the military is about $1,200 per month. Faced with this hardship and maybe no alternate stream of income, military families utilize pay day loans.
Although it's not only military personnel and families who fall victim to payday advance scam, these are with a and the higher chances, says the Center for Responsible Lending.
For another thing, many cash advance companies are targeting military personnel in addition to their families. Rather than advertising for the public generally, they focus their pitches on the military, making these officers even more more likely to please take a risk. The payday loan companies appeal to military personnel by:
- Opening storefronts close to military bases; - Hiring former military officers to operate inside their offices; - Advertising specifically to military officers and their families; and - Naming their cash advance franchises with military connotations(i.e. Military Payday Loans, Armed Forces Financial).
Faced with this type of advertising, military personnel believe that it's the normal thing to do. Without substantial funds to deliver where you can their families, they consider payday loans being a reprieve from income problems.
What they just don't understand, however, is the fact that payday advances can easily become substantial debts which might be almost impossible to pay back. Interest rates coupled with other overdue fees can double and even triple the quantity by the time the next pay period adjusted by. And nonpayment of any debt by way of a military officer is punishable through Uniform Code of Military Justice (UCMJ), parts 123a and 134, which state that this "making, drawing, or uttering check, draft, or order without sufficient funds" might be punishable by:
- Transfer - Dishonorable Discharge - Confinement - Court Martial - Loss of Security Clearance
There are also options that military personnel as well as their families can pursue to solve temporary financial troubles. Contacting the bank where they hold a checking or savings account is a possible option. Others include approaching members of the family, talking to a credit advice services, requesting a loan from a manager and contacting emergency assistance programs.
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