How Predatory Lending Affects Military Families

Predatory lending is an illegal activity in many states and jurisdictions. Predatory lending describes a practice of fraud and deception during the loan application. The result is a borrower having to pay more in interest rate costs and fees. Also, they are subject to higher rates of losses because of higher rates. This has caused many families and individuals to lose their homes, cars and other possessions.

Financial Devastation Due to Predatory Lending

Military families, especially those with loved ones in active duty or serving overseas, are a greater risk from predatory lending practices. The age of a military member can contribute to their financial inexperience, making service members easy prey for predatory lenders. In many cases, the soldier, sailor or Marine serving in the armed forces is the main breadwinner for the family. A predatory lending scheme may create financial devastation on a military family with no recourse when the loan is found to be fraudulent.

Potential Harm and Danger

The financial devastation may also have a psychological affect on the service member who learns that their family has been foreclosed on or loses some other valuable possession. This devastation can affect the quality of the armed forces and bring harm and danger to the service member.

The military operates the Military HOMEFRONT program that is available through the Department of Defense. This program offers aid and assistance to military personnel in need and helps to protect against abuse arising from predatory lending schemes.

Improve Your Credit Score - Free Consultation