“…extremely bad choice for…servicemembers….”
August 18, 2008 | Center for Responsible Lending, Daily Press, alternatives, industry, industry critics, media coverage | Comments (0)What could they possible be talking about? How about a government bonus plan that calls on service members to take a bonus now in exchange for reductions of their retirement plan? We liked this quote from the Virginia Daily Press story:
The government’s goal in offering the CRB/Redux combination is to save hundreds of millions of dollars a year in future retirement obligations. It works well, but at service members’ expense. Indeed, it might be argued that no payday lender outside a military base ever ripped off a member as severely as the government has done with this bonus offer.
Those who accept the $30,000, Quester said, are — in effect — taking out a loan that sharply lowers their retirement. But it’s a loan that can’t be paid off, which makes it worse than inflated-interest-rate loans of payday lenders.
“There is no way you can pay this loan back early and get it off your back,” she said. “You’re essentially paying it back until you die. So if you live to be 100, you’re going to pay it back until you’re 100.”
Where’s the Center for Responsible Lending on this one?
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