Posted on 05/31/2005 10:01:56 AM PDT by MikeEdwards
BNP Paribas, Saddam Hussein’s favourite bank, is in the payday loan shark business, finding many of its customers from within the ranks of American military personal. Keeping it confidential which companies it is involved with on the new business front, the bank is operating with impunity.
In its BNP-Paribas Watch, www.innercitypress.org reports that BNP is staying mum on which companies it is involved in on a flourishing new cottage industry in the U.S.: 7-11-style payday loan type operations.
As prolific as dandelions in spring, payday loan storefront operations are thick around military bases.
An underwear clad Saddam may be lingering in a jail, but it seems that his former favoured ATM machine has a foot in where he would like his to be.
By all accounts, it’s a brisk business. Considered by consumer advocates as modern day loansharks, payday loan operators are opening storefront operations across the American landscape. Here’s the kicker: the highest known density of the payday loan shark operations are concentrated around military facilities.
Preying on the vulnerable, the loan sharks are plunging soldiers as young as their early 20s into crushing debt.
"They raped me financially," airman 1st class Noelle Buessing told the Tucson Citizen.
Tucson legislators and consumer advocates say that the payday loan sharks are "a threat to the financial health of the 6,500 military personnel at Davis-Monthan AFB".
Arizona is far from being the only state where 7-11-style payday loan storefronts are doing brisk business. . . . .
(Excerpt) Read more at canadafreepress.com ...
sorry, but if an adult gets him/her self into a financial bind by not living within their means, i have little sympathy for them. no matter who their employer may be.
these folks ain't stupid, they know what they're getting into.
Loan sharks near a military base. . . ?
Whoa. . .when did that happen?
If you have to go into debt for a car, at least buy a used one and get it paid off ASAP.
Why do so many people not know this?
If you can't pay for it, don't buy it, unless you like being a slave.
These companies are some of the lowest of the low... States need to reel these bastards in big time.
You want to know if a neighborhood is on the upswing or a decline.. just look for one of these shops.. if one shows up in your neighborhood, you neighborhood is on the way down.
Calling these guys loan sharks is an insult to mobsters. These payday loan guys don't count any of the roll over fee towards your principle, at least loan sharks count a very small percentage of your vig as principle.
I agree with you, but people didn't borrow 1K and in a few months owe 2-3K back before. The way they compound interest and penalties is far worse than any mobster did. At least the mob was polite about it for a while, wanting your business again. These things are a blight because they will loan to anyone, even knowing it will destroy them in the process. At least a bank will do the right thing and say no to you.
Hell, this is mild. When I was in the army back in the 50's, the ranks were full of loan sharks (some were non-coms)who loaned money at the rate of 1 for 2 back. If a GI borrowed 10 bucks, he had to pay back 20 come payday at end of that month.
These loan sharks did not hesitate to use violence by having hired thugs beat up late/non payers.
Some of the enlisted personnel aren't too sharp -- barely got their GEDs, and I'm not sure even that's required. They probably can begin to figure out the math behind the compounding of these high interest rates. However, more senior military personnel ought to be free to spell things out for them, including naming names of lenders they should steer clear of. I really doubt officers are allowed to tell subordinates, in any official forum "Steer clear of _____, it's a rip-off".
Your points are valid but a bit extreme IMO. Debt is a marvelous tool to obtain any durable item. The key to stay out of trouble is to plan on owning the item for a longer period of time than the term of the loan. There is little danger, and much to be gained, in taking four years to pay for a car that you plan to drive for at least five years.
you are corrrect, but no one twisted their arms and forced them to borrow the money. all the info was there and they ignored it.
There is much danger if you lose your job in the meantime.
There is no danger, however, in saving enough money to pay cash for a new car, and driving the old one until you do.
The satisfaction and sense of well-being that come from being debt-free are... shall I say it... "priceless."
i'm sure every base has it's "off limits" places, but many don't listen. but an adult is an adult and if they're smart enough to fire a weapon in my defense, then they ought to be smart enough to know what they are getting into.
Yes, and I believe you can pay $5000 "rent" on a home theater system, with the option to eventually buy it.
baloney. we've always had this trouble. there have always been those quick to lend at high rates, and those gullible enough to borrow from them.
Whoa. . .when did that happen?
Yeah, they used to live in the barracks.
The gubmint needs to regulate sarcasm! Now!
While I agree that personal responsibility must be taken,the majority of these folks are very young!I think the military should counsel them against the practice of"robbing peter to pay paul",or advise them that they definitely have a future in POLITICS!!!!!!!!!!
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