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Return to Article: Negotiators agree to cap interest rates for loans to military

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  Taxpayer, You obviously never fought a day in your life for your freedoms, you seem like a "taker"...but then again this is only an assumption based on your nieve writing. I agree with GovExecs (military father of Soldier) comment's on 3Oct, 3:18PM. So please read his comments before reading this. First, let me point out that it is you who is "stupid." Yes, the Govt does have the right to impose limits to protect troops from becoming unfair victims of deceiving interest scam companies. The fact is that a military member is NOT a free citizen, they are a Govt asset to protect YOUR rights (they are owned people of the Govt). When you are in the military you are not practicing Democracy, you are protecting it. Troops have many more responsibilities then your piddly life of work, school, budgeting, and relaxation. Troops train constantly, travel to unsightly locations for operations, and deploy to war zones why you sit on your office chair ass or couch watching TV. Many of the troops who do all this are still in their teens and early 20's (young and nieve like you) who have not had the time to go to college because they are allowing you to sit on your couch. There are also troops who do attend college or graduated college before coming in the military and do not borrow from scammers (I am one of them). The military is a representation of the American public; the same scammers take advantage of the "dumb" college students too. The reason why the Govt sets limits on interest rates for military is that Govt cannot afford to have their troops overburdered and preoccupied with scams when they need to be focused on training, fighting, and staying alive which is a whole different lifestyle than being a pencil or pen warrior from behind the desk. The Govt cannot set limits on the general public because they are not "owned" by the Govt like a Soldier is....they are just "dumb" college students making "dumb" decisions, right? Or is it impossible for people who are not in the military to be dumb or stupid as you would imply? Anyway, I can go on and on and get more indepth with this, but I do not think it will help small minds such as yours...join the military for a year or two and see what you think then....live a little if you are not too big to get off your chair.

  B Mack Posted February 16, 2009 5:31 AM
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  Taxpayer,

  First, in all my posts, you have never seen any comment from me about Congress knowing what is best, about anything, unless satirical. No way, don't believe it -- but that doesn't mean I don't sometimes agree with what they do (and while not often, it does happen). I even agree with you sometimes, just not this time. (I have said I'm an independent and don't care about the political labels.)

  And I'm not saying honest businesses can't make a profit -- they have to in order to stay in business. But, doesn't it seem a little odd that the payday vultures are saying they can't make money at even 36 percent, so they are closing up shop around the military bases (please note, only closing around the military bases -- the rest of rural America look out, here they come). I don't know about you, but if I, or even Warren Buffet, received an annualized 36 percent ROI, I'd be laughing all the way to the bank.

  Ted Posted October 20, 2006 7:55 AM
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  Ted absolutely is correct! The government should make all our decisions because we are incapable of making them and Congress knows best. Heaven forbid the guy next to me should be worried about his debts! Government should prohibit him from getting money legally and force him to worry about getting beat up when he gets home. That way he will stay in the service and in the fighting arena because his debt collectors cannot get to him there! Boy Ted, you sure missed something not getting a college education!

  Taxpayer Posted October 19, 2006 7:47 AM
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  Additional Bottom Line: The existence of technology and home comforts that create a higher standard of living does not automatically entitle everyone to them. The decision to have a cell phone or a satellite dish, cable TV, home computer, more than one car, etc. must be weighed against the obligations of living independently, i.e., buying food, paying the rent or mortgage, paying for utilities, etc. The harsh reality is that many people simply do not make enough money to have all these things, and so have to give up something, but don't.

  Similarly, the decision to have children ought to take into account one's ability to handle the added expense of caring for them. The fundamental desire to have and love children is, regretfully, not enough.

  This article focused on our citizens in the military, but the problem isn't unique to them. The solution isn't to legislate special provisions for them, any more than the rest of the country. Some people can afford the standard of living they want, others cannot. Depending on someone else to make your life better for you has never been an effective long-term solution.

  GovExec.com reader Posted October 10, 2006 10:14 AM
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  Bottom line: Interest rates are out of control. The finance and banking industries use "universal default" to jack up interest rates on anyone they deem a risk. It doesn't matter whether you pay your bills on time or have model credit -- any excuse will do, and the payday loan folks are the worst of the worst. Congress needs to do more to protect our citizens from all of these predatory, unscrupulous lenders.

  GovExec.com reader Posted October 5, 2006 11:56 AM
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  The point of this was to prevent the very low paid military and non-military from becoming victims of "payday loan" operators. If the enlisted military members were paid more, they would not be on food stamps, WIC, eating poorly. My son is active duty and trying to do his service to his country and still support his wife and children. I clip coupons that his wife uses on food to help them afford other necessities like clothing and shoes for the growing boys. This "cap" will prevent soldiers and other low income people who are overburdened by expenses who feel that payday loans are their only option from being victimized. I suspect that most of the previous comments come from people who are at least GS-11's and above and have great credit ratings and flexibility for discretionary spending. A great majority of our citizen soldiers could not support their families on their private industry jobs and joined the military to ensure they at least had medical care. Don't judge too harshly those who risk their lives in combat for your safety and freedoms. My son fortunately has never resorted to a payday loan provider -- he called me the one time he needed help. His annual pay is under $25,000 when housing and medical are deducted. He is now headed back to Iraq for a second tour and I'd give every dime I have to support his family to keep him here or ensure that he returns unharmed. Being deployed means he has no time to attend college so he can get promoted in rank which in turns means more money. Judge not, lest ye be judged.

  GovExec.com reader Posted October 3, 2006 3:18 PM
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  Taxpayer,

  It would probably be a safe bet that you have a college education. But please think back to the day you graduated from high school. Could you balance a check book without help? If so, you were one of the few (and I could because my parents made sure I knew how). Go to the closest high school, pick the graduating senior that is ranked about 300 out of 400 students (75 percent level). Give them your checkbook and see if they can balance it without help. Ask them for a reality check of how would they pay the credit balance on a credit card and how long would it take them to pay off a balance of several thousand. And then add the fact, that if you can't pay your credit card bill, you will get in trouble and kicked out of the only job you have ever known in your few very short years of a working career (right after you get back from Rummy's adventure), or be fined some of your pay, which only exacerbates the problem. This is the experience level of most of the kids in the military today that are getting in this type of trouble. The 18-year-old, first time from home, and nobody, and especially his parent(s), or the education system that failed to provide a working education, have taught him differently. By other posts you have made, it has become obvious over time that you despise the military, and especially veterans. (Most sociology studies say those who protest the most, are those who can't.) But do you want the kid in the foxhole next to your neighbors kid (no way would your child be in the military) worrying about debts at home, (and 36 percent is outrageous - it should be 10 percent max) instead of the terrorist coming down the road -- both would get killed. And by the way, while predominantly military focused, a lot of rural America has the same problem.

  Ted Posted October 3, 2006 9:52 AM
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  Taxpayer,

  Why do you have such disdain for the Armed Services? This is not the first post of yours where you make it a point to show your displeasure with the "favoritism" shown to the men and women who are dying to support your freedom.

  I suppose you're against the Soldier and Sailor's Relief Act as well?

  The truth of the matter is that our soldiers simply don't get paid enough. When you see young men and women on WIC and using food stamps to buy basic groceries, you'll understand that sometimes they get in a jam and don't make the best financial decisions.

  Keep in mind, many of these kids who take these payday loans are just out of high school and away from their parents for the first time. These payday loan companies are usually located right out the front gate of most major military installations. You think this is a coincidence? Of course not! They are specifically targeting soldiers.

  Have a heart, lighten up, and write your congressman if you feel so strongly about it!

  Army Logistician Posted October 2, 2006 8:08 PM
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  This is ridiculous. Should Congress pass laws prohibiting our troops from smoking cigarettes, drinking alcohol, driving motorcycles, gambling in Las Vegas, being in emotionally unhealthy relationships, not getting enough sleep, eating poorly ... where does it stop?

  Which is worse, the implication that the troops are too stupid to manage their own finances, or the devaluation of the civilian population -- i.e., they're not worthy of "protection" from the predatory lenders?

  If reform is needed in lending practices, then do it for everyone. Otherwise, hold everyone accountable for their financial decisions.

  GovExec.com reader Posted October 2, 2006 4:36 PM
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  Usury limits set by Congress should be illegal and are totally against the American way. Congress is not elected to set prices and should stay out of the private sector especially where pricing is concerned. If military people are not smart enough to borrow at rates that are affordable or are too lazy to shop for the best rate or unwilling to save and need immediate satisfaction -- it is not the place of Congress to correct them! The Congress should set the penalty on the borrower and not the lender! This country seems to have a real problem with holding the individual responsible for the action accountable. Of course it is not the fault of the lender that the borrower is stupid or unwilling to forgo a purchase and is willing to pay outrageous rates. This proposal simply opens the door for illegal lending that generates no taxes and is not subject to regulation.

  Congress also has no right to discriminate so that only military people are affected!

  Taxpayer Posted October 2, 2006 6:33 AM