Payday Loans Affecting Military Readiness, DOD Decrees

Payday Loans Affecting Military Readiness, DOD Decrees
Military Organizations Providing Zero-Interest Loans in Some Areas






August 15, 2005
Military organizations and Florida Attorney General Charlie Crist have organized a program of low-cost loans to servicemen and women, as an alternative to the ruinously expensive payday loans increasingly used by hard-pressed military families.

Payday Lenders
• DOD: Payday Loans Affecting Military Readiness
• States Want FDIC Crackdown on Payday Lenders
• No Payday for Payday Lenders in Texas, New York
• Payday Lenders Prey on African-American Neighborhoods
• Payday Loan Report: Reform Needed
• Illinois Warns of Payday Loans
• Fast Cash Loans Charged with Illegal Practices
• Cashback Payday Loans Banned in NY


The problem has become so widespread that the U.S. Department of Defense has determined that the astronomical rates have an impact on military readiness. The debt resulting from these loans places a service member at risk of losing their security clearance, or worst case, being discharged from the military.

In an effort to address the problem, the Navy/Marine Corps Relief Society and counterparts serving the other branches are providing zero percent interest loans to assist servicemen and women trying to get out of debt and to those with emergency financial needs.

Each week, servicemen and women and their families – trying to make ends meet – are victimized by payday loans with exorbitant fees that make it difficult, and sometimes impossible, to get out of debt.



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