News Feed

  • Predatory Lenders Still Target Soldiers: 'Desperate People Accept Any Terms'

    As Marketplace reports: The Military Lending Act set a national interest rate cap of 36 percent APR (annual percentage rate) for loans to military members and their families (excluding mortgages and auto finance loans). The Act covered three specific

  • Launches New Mobile Website To Compare Credit Cards ..., a leading US personal finance website that helps people save smarter and invest smarter, today unveiled a new, improved mobile website that is optimized for iPhone users. Consumers can now access the most popular sections of the site,

Colorado Springs Automobile Financing : Car Loans for Bad Credit @ 0 Money Down has become REALITY!

Colorado Springs Bad Credit Auto Loans in Colorado : is a well-known name in the car financing field. The company is a leader ...

Predatory Lenders Still Target Soldiers: 'Desperate People Accept Any Terms' - Yahoo! Finance (blog)

As a result, lenders are offerings payday loans, which typically have annual percentage rates over 400%, with a duration of five months instead of three. Same is true of auto-title loans, which are secured by the vehicle’s tile and typically have rates above 100%.

In their reporting, ProPublica and Marketplace cited examples such as a soldier based in South Carolina who borrowed $1600 and ended up paying $15,000 in interest over 32 months, and another in Texas who paid 600% in annual interest for a $400 loan.

As Kiel explains in the accompanying video, military personnel are particularly vulnerable to these legal loan sharks because “desperate people are willing to accept any terms to get the money.”

That desperation is fed, in part, because there are “repercussions for soldiers who fall into debt,” including the loss of security clearance, he says. Fear of such reprisals inhibits soldiers from taking advantage of government-sponsored aid agencies that are on the base and offer loans at far better terms, including 0%.

Soldiers "have a motivation to take care of [money needs] quickly, quietly and discretely; obviously, that’s not what ends up happening,” Kiel continues.

Indeed, as Marketplace quotes Army Captain Brandon Archuleta: “On a good day I would be notified by the soldier that a payday lender was looking for them because they are in default. On a bad day, it would be almost like an ambush. A phone call looking for such-and-such soldier. They were relentless.”

Looking forward, Kiel notes Congress has tasked the Defense Department to study the issue and a report is due by year-end. The likelihood is “there might be rules issues to case a wider net” and better prevent predatory lenders from targeting those who provide them the blanket of freedom under which they operate.

Aaron Task is the host of The Daily Ticker and Editor-in-Chief of Yahoo! Finance. You can follow him on Twitter at @aarontask or email him at

The Daily Ticker Presents: Generation I.O.U.

Yahoo! Finance, Yahoo! News and The Daily Ticker are teaming up to produce a special live streaming event on May 23 at 12:30 pm ET around the rising cost of college.

Are you burdened by student loan debt? Have you moved back home? Are you having trouble finding a job?

Tell us your story in 90 seconds or less and ask our experts a question. Upload your video to Flickr here . Or, send us an email at: .

"The Daily Ticker" covers the most important business stories of the day -- the economy, investing, corporate leadership and politics. "The Daily Ticker" picks up where Tech Ticker left off and is hosted by Aaron Task, Lauren Lyster and Henry Blodget. Often serious, sometimes irreverent and always interesting, "The Daily Ticker" gives viewers a unique take on the business world's most crucial stories.