Florida Payday Loans

Payday loans -- an expensive choice for borrowers with no options
The fast growing payday loan industry thrives on people with the fewest banking ... In Florida and some other states, a check-cashing law was enacted before ...

TLPJ - Press - Florida Supreme Court Rules That Borrowers Cannot ...
Florida Supreme Court Rules That Borrowers Cannot Be Forced to Arbitrate Challenge to Payday Loan Contract with Buckeye Check Cashing.

The Payday Loan Trap: Don't Get Caught
A member of Florida Central Credit Union (FCCU) used a payday loan outlet to borrow $300. By the time she turned to her credit union for help, the woman had ...

University of Florida News - Military families targeted for high ...
Payday loan companies — which make high-cost loans to cash-strapped people ... Payday loans are high-interest loans intended to tide the borrower over to ...

Payday Loans
Army Chief Warrant Officer Thomas Burden needed money, but he had just been through a divorce, his credit was bad and he couldn't qualify for a conventional loan. So he turned to a payday lender — one of dozens within a mile of Fort Hood, Texas — and began a cycle of getting quick cash advances at high interest rates. His first $300 loan cost him $60 every two weeks. More loans and fees at the equivalent of 520% interest per year soon swelled the debt to more than $1,400. "It just kind of keeps snowballing if you don't have the money to cover it," said Burden, 35. The Defense Department is starting a program to warn service members about the dangers of payday loans, citing reports that suggest payday lenders target military personnel. John Molino, deputy undersecretary of defense for military community and family policy, said last week that the department would begin teaching service members how payday loans can lead to an endless cycle of compounding debt and encourage them to make better choices. The action follows a study, released last month by two professors at the University of Florida and California State University, that found "irrefutable geographic evidence demonstrating payday lenders are actively and aggressively targeting U.S. military personnel." The study looked at 19 states and in 12 — Arizona, California, Colorado, Delaware, Florida, Kentucky, North Carolina, South Carolina, South Dakota, Texas, Virginia and Washington — found that the single greatest concentration of payday loan stores in a county with a military base. In Missouri, the study found that Pulaski County, home to Fort Leonard Wood, was ranked 11 out of the state's 115 counties in terms of concentration, with 16 payday lenders for a population of about 41,000. Neighboring Laclede County ranked 10th, despite its isolation in south-central Missouri. "Military folks tend to be young, they often come from financially vulnerable backgrounds and tend to have less education," said Christopher Peterson, a law professor at the University of Florida and co-author of the study. "All of these are reasons the military make particularly enticing targets for this type of loan." Some states also have clamped down to limit interest charges or restrict how often customers can get the loans. In Congress, Rep. Sam Graves, R-Mo., has introduced legislation that would cap payday loans at 36% interest for military personnel and their spouses. "I want these soldiers to be concentrating on their job and making sure that they keep themselves alive," Graves said. Peterson said Graves' proposal is a start, but he called for broader legislation to protect all payday loan customers. While it's difficult to know exactly how many service members get payday loans, Defense Department surveys indicate the figure is between 9% and 12% of enlisted personnel. Congress' investigative arm, the Government Accountability Office, concluded in a report last month that the Defense Department was not using the tools it has in place to curb the effects of predatory lending practices. The GAO report said some junior enlisted members were not receiving the financial management training required in service regulations, despite warnings from top defense officials that debt problems can affect performance and unit readiness. The payday lending industry denies it targets the military. Steven Schlein, spokesman for Community Financial Services Association, which includes two-thirds of payday lending companies, estimates military personnel account for 1% of customers. Rather, he said, stores focus on middle-class consumers who frequent suburban strip malls. "You'd think if we're targeting the military we'd be doing a better job," Schlein said. Still, the association adopted "military best practices" rules last year in response to complaints. The guidelines prohibit lenders from garnisheeing military wages or contacting a customer's military chain of command to collect money. And collection efforts must stop if a person in the military is deployed to combat or a reserve or National Guard member is called to active duty. Growth in the payday loan sector has exploded since the early 1990s, from about 300 stores in 1992 to more than 20,000 today, according to industry estimates. Consumer groups have long criticized payday lenders for preying on poor and minority communities, where consumers with credit problems may not understand the high rates and fees associated with short-term loans. Loan stores often encourage customers to "roll over" debts after the two-week loan period is up, which only compounds the fees. Burden, the Fort Hood officer, eventually ended his debt cycle. After clearing up his credit problems, he got a regular loan from a military loan company and paid off the $1,484 he owed, which included nearly $250 in accrued interest.

| Arbutus Seven| Lodge Eight| Pay Day Nine|