On Victory Drive, Soldiers Defeated by Debt

[unhappycamper]

http://www.truth-out.org/news/item/16402-on-victory-drive-soldiers-defeated-by-debt

On Victory Drive, Soldiers Defeated by Debt
Thursday, 16 May 2013 10:36
By Paul Kiel, ProPublica | Report

~snip~

In June 2011, when Levon Tyler, a 37-year-old staff sergeant in the Marines, walked into Smart Choice Title Loans in Columbia, S.C., it was the first time he'd ever gone to such a place, he said. But his bills were mounting. He needed cash right away.

Smart Choice agreed to lend him $1,600. In return, Tyler handed over the title to his 1998 Ford SUV and a copy of his keys. Tyler recalled the saleswoman telling him he'd probably be able to pay off the loan in a year. He said he did not scrutinize the contract he signed that day.

If he had, Tyler would have seen that in exchange for that $1,600, he'd agreed to pay a total of $17,228 over two and a half years. The loan's annual percentage rate, which includes interest and fees, was 400 percent.

Tyler said he provided his military ID when he got the loan. But even with an annual rate as high as a typical payday loan, the Military Lending Act didn't apply. The law limits the interest rate of title loans — but only those that have a term of six months or less.

[madville]

1. I wonder what his story is

E-6 in the military pays pretty well these days, around $4,000-$6,000 a month depending on duty location and time in. It's usually divorce/child support that do in their finances at that stage of ones' career.

I was in the military awhile, still work around them everyday, the financial decisions members make are still amazing at times. E-3's buying $40,000 cars, the latest thing around here is all these junior guys buying houses with their VA loan guarantee when they know they are transferring in a few years, disaster in the making.

The military pays so well these days it takes some very poor decisions to get in financial distress, many do their best though. It's pretty hard to protect people from themselves at times.