MILITARY PERSONNEL: DOD's Tools for Curbing the Use and Effects of Predatory Lending Not Fully Utilized
Abstract
The Department of Defense (DOD) has expressed concerns about servicemembers use of predatory consumer loans as well as their overall financial conditions. Predatory lending has no precise definition but describes cases where a lender takes unfair advantage of a borrower, sometimes through deception, fraud, or terms such as very high interest or fees. Serious financial problems can adversely affect unit morale and readiness as well as servicemembers credit history and military career. DOD has tools such as off-limits lists to help curb the use and effects of predatory loans. GAO answered two questions: (1) To what extent do active duty servicemembers use consumer loans considered to be predatory in nature? and (2) Are DOD and active duty servicemembers fully utilizing the tools that DOD has to curb the use and effects of predatory lending practices? GAO is making two recommendations for DOD to curb the use and effects of predatory lending practices on servicemembers: amend regulations to require at least semiannual meetings of the Armed Forces Disciplinary Control Boards and clarify regulations pertaining to advertisements in official DOD publications. DOD concurred with GAOs recommendations.
Document Details
- Document Type
- Technical Report
- Publication Date
- Apr 01, 2005
- Accession Number
- AD1174871
Entities
People
- Alissa Czyz
- Allen Westheimer
- Brian Pegram
- David Mayfield
- Greg Iii Justice
- Jack E. Edwards
- Leslie Bharadwaja
- Marion A. Gatling
- Minette Richardson
- Terry Richardson
Organizations
- United States Government Accountability Office