Military members face challenges every day in their careers, whether during peace or war time.
Unfortunately, one of their toughest battles could be right here on the home front.
Many service members are complaining of issues with credit and debt, including aggressive debt collection practices. Last year, military members logged nearly 20,000 complaints with the Consumer Financial Protection Bureau, nearly half of which dealt with debt collection.
Among their main concerns is that unpaid debt can threaten their military career. Many blame the industry and point out the debt collector/debt buyer industry is out of control, to the point that it is affecting America’s military.
Like all young men and women in their teens and early 20s, many service members are not very knowledgeable when it comes to debt and finances. They make mistakes like the rest of us, but in their case, mistakes can end their careers.
Payday Loans and “Fast Cash” Lenders Preying on Military Members
There is also concern for the number of predatory lenders springing up around military bases. One report showed 20 “fast cash” lenders within proximity of the main gate of Fort Campbell, Kentucky. Military families already in difficult financial situations are being preyed upon by unscrupulous lenders.
In addition to predatory lending, military members also reported they were targeted by debt collectors for debt they didn’t believe they owed. This is due in part to the medical debt service members accumulate for which they believe they are not responsible. Many vets are discharged from the hospital assuming their health insurance, VA coverage, or Medicaid/Medicare covered all of the expenses. Unfortunately, this is not always the case.
Service members also face issues with relocation and are easy targets when it comes to identity theft – something that can have a devastating effect on a person’s credit. Thousands reported resolving errors following identify theft crimes to be a major issue.
Because we are veteran owned and operated we are sensitive to those issues experienced by those who serve our country and we proud to announce our Veteran’s/Active Military Discount. See our website (www.newyoufinancial.com) for details.
If you are a service member with questions about debt or you have concerns about debt collection, contact us!