As a result, experts say, service members often avoid taking financial problems to their superior officers and instead resort to high-cost loans they don't fully understand.The Department of Defense, which defines which loans the Military Lending Act covers, has begun a process to review the law, said Marcus Beauregard, chief of the Pentagon's state liaison office.Ace Cash is among a number of payday lenders just outside the gates of Lackland Air Force Base in San Antonio, and it has four stores within three miles of Fort Hood in Texas.
"I don't care what type of spot I get in." American Life Enterprises companies operate nine title-lending branches in Nevada and South Carolina.Some defended the proliferation of new products as helpful to consumers. In return, Tyler handed over the title to his 1998 Ford SUV and a copy of his keys.In June 2011, when Levon Tyler, a 37-year-old staff sergeant in the Marines, walked into Smart Choice Title Loans in Columbia, S. Tyler recalled the saleswoman telling him he'd probably be able to pay off the loan in a year.Attached to his contract was an addendum that offered a "Summer Fun Program Payoff." While the loan's official term was 32 months, putting it outside both South Carolina's regulations and the Military Lending Act, the "Summer Fun" option allowed Tyler to pay off the loan in a single month.If he did so, he'd pay an annual rate of 110 percent, the addendum said.