Posted on 07/25/2014 10:37:26 AM PDT by Second Amendment First
Army Spc. Angel Aguirre needed a washer and dryer.
Money was tight, and neither Aguirre, 21, nor his wife had much credit history as they settled into life at Fort Carson in Colorado in 2010.
That’s when he saw an ad for USA Discounters, guaranteeing loan approval for service members. In military newspapers and magazines, on the radio, and on TV, the Virginia-based company’s ads shout, “NO CREDIT? NEED CREDIT? NO PROBLEM!” The store was only a few miles from Fort Carson.
“We ended up getting a computer, a TV, a ring, and a washer and dryer,” Aguirre said. “The only thing I really wanted was a washer and dryer.”
Aguirre later learned that USA Discounters’ easy lending has a flip side. Should customers fall behind, the company transforms into an efficient collection operation. And this part of its business takes place not where customers bought their appliances, but in two local courthouses just a short drive from the company’s Virginia Beach headquarters.
From there, USA Discounters files lawsuits against service members based anywhere in the world, no matter how much inconvenience or expense they would incur to attend a Virginia court date. Since 2006, the company has filed more than 13,470 suits and almost always wins, records show.
“They’re basically ruthless,” said Army Staff Sgt. David Ray, who was sued in Virginia while based in Germany over purchases he made at a store in Georgia.
(Excerpt) Read more at washingtonpost.com ...
I wasn’t clear enough:
The level of stupidity in recruits was APPALLING when I was in.
According to my boy, it’s increase today is proportional to the rate of breeding among the stupid.
That doesn’t excuse soldiers being taken advantage of or the tone of this thread, about which I’ve already commented.
This is a reflection of the state of government, education & family in this country (not to mention the pathetic state of leadership in the military) and shouldn’t besmirch those willing to, ironically, fight for others’ rights to screw them. Stupid or not.
I was at a PVA fundraiser this past weekend. Perhaps I’m a bit sensitive as a result...I think not.
Parents are checking out
Really? All that from my simple statement? Shaking my head........
Sorry, but these folks agreed to the deal.
Now, let’s talk about another organization that uses the same tactics: The IRS.
The people who do get taken advantage of don’t think they can afford to spend $800 or so for a decent budget washing machine and dryer, nor will they consider buying 2nd hand for even less or economizing on non-essentials and saving up to pay cash and in truth, they can’t afford $800 or even $400 for used because they don’t save anything, spend money recklessly and on impulse items (and on cigarettes, beer and liquor and lottery tickets), and at the end of the week, they may only have $30 left in their pockets if that much. But they can “afford” $10 a week¸ or so they think because that would still leave them with $20. That is a very common rationale.
Army Spc. Angel Aguirre needed a washer and dryer…..“We ended up getting a computer, a TV, a ring, and a washer and dryer,” Aguirre said. “The only thing I really wanted was a washer and dryer.”
And once they go to one of those “rent to own” places they are told for only $10 more per week they can “purchase” even more stuff. What a bargain! “I will still have $10 left at the end of the week so I’m in the black – right?”
What they don’t consider is that the washing machine and dryer that they might have needed and all that other stuff like a new flat screen TV, a computer and ring that they didn’t really need, that they are paying “only” $20 a week for ends up costing many, many thousands of dollars over the course of the loan term and far over the actual retail value of the items in exorbitant interest and late fees if they are even one day late in making their weekly payment. And I bet most of them don’t bother to read the terms or even attempt to do the math on what the loan terms actually cost them or what will happen if they default. They only think – ““New, shiny, cool stuff today” - I’ll worry about paying for it tomorrow.”
But if something unexpected happens, like their car breaks down, one of their kids gets sick, they have to not pay any bills that month or take out a payday loan to pay for the emergency repairs and they get behind a big ole 8-ball of getting further and further behind and they are hounded by creditors and or the stuff gets repossessed and or their wages get attached.
I am a payroll manager and I’ve seen a fair share of wage attachments over the years and all too often these very same folks also have a child support order, sometimes more than one. I’ve also seen that these same people won’t contribute to their company’s 401k and when they fall behind in their bills, they will submit a W-4 withholding form, claiming 20-99 exemptions so that little or no federal tax is taken out of their pay.
As long as the W-4 is properly filled out and signed and they don’t personally tell me it is fraudulent, and it is not my job to determine its accuracy or give them personal tax advice, I will however council them in very general terms to make sure they understand that by claiming so many exemptions from withholding, not having tax withheld, that doesn’t mean they won’t owe taxes at the end of the year and what the possible consequences of a tax levy are, but I can’t stop them from doing it. But more often than not, a year or so later I will receive an IRS tax levy order for them.
Until last year, the company I work for allowed employees to cash out their PTO. I had one employee who had both a child support order and an IRS levy and every pay he was cashing out all but an hour or so of his PTO balance, I presume just to make ends meet. Then one day he got very sick and missed over a week of work and having no PTO to cover it, had to take the time off without pay and was in an even bigger world of hurt. I felt bad for the guy, he’s seems like a nice guy and is a good and reliable worker but he obviously can’t handle money.
FWIW, my company is considering, as a part of our “wellness” initiative, bringing in representatives from a reputable local bank who will, free of charge offer financial wellness seminars and also offer free one on one financial counseling sessions including lessons on basic family budgeting to any employee who wants to take advantage of it. Sadly I think the people who need it most will probably not participate.
You are correct that the people who most need financial counselling are the least likely to take advantage of it. I’m conflicted about the payday and title loan companies business models because I think if they didn’t exist the financially desperate will go to loan sharks instead and end up with broken legs or worse; military members could compromise security.
My problem with this company is the specific way they target them when they can’t respond the the suits. But as many here have said don’t sign the contract if you can’t afford it.
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