Programs teach Airmen about predatory lenders

  • Published
  • By Tyler Hemstreet
  • 62nd Airlift Wing Public Affairs
MCCHORD AIR FORCE BASE, Wash. --  Thanks to a new law that goes into effect Oct. 1, Airmen at McChord will receive some protection from predatory lenders who charge triple-digit interest rates. 

The legislation includes an interest rate cap which prohibits any lender from imposing more than a 36 percent annual interest rate on loans to members of the armed forces stationed anywhere in the world or their dependents. 

It also contains a provision that forbids lenders from basing loans to servicemembers on post-dated checks or on wage allotments that allow lenders priority access to military pay. 

The law will also prevent lenders from requiring servicemembers to agree to mandatory arbitration in the event of a dispute or to waive their legal rights to recourse. 

Enlisted Airmen are usually the ones who fall prey to payday lenders, said Chief Master Sgt. Russell Kuck, 62nd Airlift Wing command chief master sergeant. 

"Airmen need to know the risks that come with taking out payday loans, and what options they have available to them before they choose to go through with it," Chief Kuck said. 

In an effort to keep Airmen financially sound at McChord, the 62nd AW legal office is continuing a campaign of education and awareness to alert Airmen of the new law, said 1st Lt. Lauren Fisher, 62nd AW. 

"We just want to do all we can to make sure Airmen know their rights before signing on the dotted line [to receive a payday loan]," Lieutenant Fisher said. 

The Airman and Family Readiness Center has also come up with a presentation to warn Airmen about predatory lending companies. 

"A lot of the young Airmen [who use payday loans] have limited financial training and they are overburdening themselves," said community readiness consultant Laila Christensen, 62nd Mission Support Squadron. 

"They're in a culture of not asking for help and by the time they come to us for help, they may already be deep in debt," she said. 

The presentation not only warns Airmen of predatory lending practices, but also of scams such as identity theft. 

Base leadership and the program's presenters hope the presentation will help Airmen avoid the stress that comes along with worrying about finances, Ms. Christensen said. 

"Financial readiness is tied with personal readiness," she said.