 |
Payday loaning draws outrage at panel hearing
May 24, 2006 - Sacramento, California
Pleas to crack down on "legalized loan sharks" who prey on young military personnel drew a sympathetic response from the chairwoman of a joint legislative committee yesterday, but little sign of action. State Sen. Liz Figueroa, D-Sunol, had strong reactions as her committee was told of high-interest lending practices that are plunging young service men and women deep into debt. The chairwoman of the Joint Committee on Boards, Commissions and Consumer Protection said the practice "sickens me" and called the situation "horrific." But at the end of the hearing, Figueroa only mentioned closing a loophole that excludes the military from protection by the faulty-auto "lemon law" if their vehicle was purchased out of state. "The one I am going to immediately work on is the issue of the lemon law," Figueroa said. She was the lone legislator in the room until state Sen. Ed Vincent, D-Inglewood, arrived midway through the two-and-a-half-hour hearing. The three Assembly members of the committee did not attend the hearing. Two uniformed men from San Diego area bases opened the hearing with passionate pleas to crack down on the growing number of loan offices lining the roads near military installations. But there was no sign at the hearing that California legislators are planning to tighten regulation of loans secured by future paychecks or, like North Carolina, ban the so-called payday loans. Capt. Mark Patton, a Point Loma Naval Base commander, said an "explosive increase" in the number of loan shops has become a "direct threat to military readiness." Patton said personnel are being denied security clearances because of financial problems. He cited the example of a highly trained sailor unable to deploy to Iraq, whose skills are unused now as he guards a gate. The Center for Responsible Lending identified nine predatory lending practices, Patton said, and current California law permits all of them. "We simply do not need the so-called services of these predators outside our gates that are little more than legalized loan sharks," Patton said. Officials from lending companies defended their businesses, saying the provide a desirable service. Military and government officials expressed a need to educate young military personnel, who often are not sophisticated in finances. Jennifer Contreras of the Navy-Marine Corps Relief Society at Lemoore said military personnel may be attracted to the speed of obtaining a payday loan "in many cases less than 10 minutes." Getting aid from the Relief Society, Contreras said, requires a step-by-step layout of income and needs that takes longer than "some folks in our I-need-it-now society" are willing to wait.
News Source
Union-Tribune, Ed Mendel, Staff Writer
Recent Related Stories - Military
Older Related Stories - Military
- South Dakota senator wants second look at payday loan cap [November 17, 2006]
- Professors' research sparks payday loan reforms [November 4, 2006]
- President caps payday loan rates to military personnel at 36 percent [October 18, 2006]
- Arkansas delegation supports payday loan interest cap [September 29, 2006]
- Advance America to stop providing payday loans to military personnel [September 25, 2006]
- Lawmakers agree on 36 percent payday loan cap [September 21, 2006]
- Senators consider payday loan limits, criticize industry [September 16, 2006]
- Credit unions offer payday loan alternative [September 15, 2006]
- Testimony: Defense Department report seriously flawed [September 14, 2006]
- Payday lender plan could nix profit from military [September 13, 2006]
- Military looks to change laws regarding payday loans [September 12, 2006]
- On payday, many GIs pay back [September 10, 2006]
- Talent renews push for cap on payday loan interest rates [September 7, 2006]
- Blagojevich calls for federal payday lending protections for military personnel [September 7, 2006]
- Utah lawmakers consider limiting payday loans to military [September 5, 2006]
- Payday lenders target young military families [September 5, 2006]
- Military wants to crack down on payday lenders [September 4, 2006]
- Weekend payday-loan measure fails [September 2, 2006]
- Pentagon sees risk in troops' loan debt [August 31, 2006]
- Save military, civilians from onslaught of predatory lenders [August 30, 2006]
- Pentagon backs effort to cap interest rate on 'payday loans' [August 15, 2006]
- Payday loan rate cap aims to help service members [August 6, 2006]
- Commander's Corner: Shipmates can prevent indebtedness, alcohol-related incidents [August 4, 2006]
- 'Payday' loans become target in Washington [August 3, 2006]
- Military payday loans [August 2, 2006]
- Payday loans aren't the answer to financial woes [July 23, 2006]
- Tale of Alabama man's payday lending schemes: Meet John Gill, Jr. [July 20, 2006]
- Military personnel prime targets for loans [July 9, 2006]
- Targeting predator lenders [June 17, 2006]
- The payday loan trap [June 16, 2006]
- Navy preying on predatory lenders [June 9, 2006]
- GAO: Military Disciplinary Board might have prevented payday loan ripoff [June 5, 2006]
- Payday loaning draws outrage at panel hearing [May 24, 2006]
- Service members called vulnerable [May 23, 2006]
- Military loses to payday lenders [February 20, 2006]
- Toll taken by payday loans gets attention from military [February 2, 2006]
- Military calls for more restrictions on payday lenders [February 2, 2006]
- US troops screwed by loan shark companies [February 1, 2006]
See: Fewer military-related stories
Related Stories - California
- Payday lenders to reform policies [March 15, 2007]
- The truth behind payday loans [November 8, 2006]
- California ... orders online payday loan stores to stop lending [September 8, 2006]
- Military wants to crack down on payday lenders [September 4, 2006]
- Weekend payday-loan measure fails [September 2, 2006]
- Bay Area check casher moves to Miami [August 16, 2006]
- Shipmates can prevent indebtedness, alcohol-related incidents [August 4, 2006]
- Lockyer sues pay day loan company over small claims [August 2, 2006]
- California payday loan firm faces charges [August 2, 2006] - Pasadena
- California Attorney General Lockyer files lawsuit ... [August 1, 2006] - Pasadena
- Cash America Buys CashNet [July 10, 2006] - Belmont
- Targeting predator lenders [June 17, 2006]
- The payday loan trap [June 16, 2006]
- Navy preying on predatory lenders [June 9, 2006]
- Payday loaning draws outrage at panel hearing [May 24, 2006] - Sacramento
- Service members called vulnerable [May 23, 2006]
- LeadClick Media says payday loan leads business is booming [May 8, 2006]
- ACORN turns up the heat on Money Mart [April 8, 2006]
- Loan Shark of the Year award given [March 2, 2006]
- Can San Francisco control legal loan-sharking? [January 27, 2006]
Return
See: Recent News | Archived News | RSS Newsfeeds | News by State
Go to PLIWatch.org home.
|
|
