Department of Defense (DoD) Report On Predatory Lending Practices Directed at Members of the Armed Forces and Their Dependents

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Excerpt:

 

"Military families have characteristics that can make them a market of choice for predatory lenders. Forty-eight percent of enlisted Service members are less than 25 years old, typically without a lot of experience in managing finances, and without a cushion of savings to help them through emergencies. They are on their own without the guidance or assistance of family, with perhaps their first significant paycheck. They are paid regularly and are not likely to be downsized, outsourced or to quit their employment. Also, the military culture emphasizes financial responsibility, with basic policy explicitly stating that Service members are to pay their just debts.

 

Finally, geographic concentration is another factor making Service members and their families a lucrative market. Active-duty military are physically concentrated in and around bases, and having a clearly defined cultural identity allows some lenders to identify themselves in the virtual market place as being close to the military community."

 

Full report HERE in PDF format