Continued: Saga Of Poor Soldier, Wicked Payday Lender
This payday loan drama that has been playing out for some time now has me totally confused. First there were reports that there were too many payday lenders near defense establishments. Then we came to know that our soldiers were in not too good financial shape thanks to these usurious, wicked payday loans. Then suddenly the Defense Department comes out with a study that shows that payday loans are having an adverse effect on our armed forces. And before you knew it, the Pentagon had also jumped into the fray. Now, Dr William Brown Jr, an economist claims that the threat that these loans pose is overplayed. Forgive me if I sound confusing. Thing is I am a bit wonked up myself.
So how do we stand now? Over the past two years Dr Brown has conducted research on payday lending, military compensation and the use of payday loans by military personal. The study results show that military enlisted personnel who have had a payday loan repay them more quickly than their civilian counterparts. RTOonline.com reports:
There is little evidence that military users of payday loans use these loans as a substitute for longer term credit. Given the relative low overall default rate for such loans in general, the claims of some opponents to payday lending that payday loans are a threat to military readiness appear unsupported.
Read more: Economist Challenges DoD Study on Payday Loans; Banking Committee Testimony