San Diego, CA - The 2005
Washington State Legislature amended, the Act Relating to
Check Cashers and Sellers, otherwise known as payday
lenders and it became effective July 24, 2005. The changes
specifically address making loans to military borrowers. A
letter from the Department of Financial Institutions,
Division of Consumer Services alerted all licensed check
cashers and sellers with general information about this
new amendment. It basically limits their collection
activity while a service member is deployed.
A military borrower is defined as, "an active duty member
of the armed forces of the United States or any member of
the national guard or the reserves of the armed forcesof
the United States who has been called to active duty."
Pursuant to the amendment:
"(1) A licensee shall: (a) When collecting any delinquent
small loan, not garnish any wages or salary paid for
service in the armed forces;
(b) Defer for the duration of the posting all collection
activity against a military borrower who has been deployed
to a combat or combat support posting for the duration of
(c) Not contact the military chain of command of a
military borrower in an effort to collect a delinquent
(d) Honor the terms of any repayment agreement between the
licensee and any military borrower, including any
repayment agreement negotiated through military counselors
or third party credit counselors; and
(e) Not make a loan from a specific location to a person
that the licensee knows is a military borrower when the
military borrower's commander has notified the licensee in
writing that the specific location is designated
off-limits to military personnel under their command."
Importantly, these rules only come into play if a service
member enters into an agreement with a payday lender in
This is a positive development, however for all members of
the military who finds themselves caught between the
proverbial rock and a hard place, there is a responsible
alternative. Below is a press release about Pioneer
Services "Help Loans" for service members. It is a welcome
alternative to payday lending, which often targets and
traps members of the military, and an example of Pioneer
Services commitment to providing financial independence
for military families. To ensure that service
members are receiving the best financial education
possible, ALL Pioneer Services field personnel must be
ICFE Certified Credit Report Reviewers. Additionally many
of their personnel are also ICFE Certified Identity Theft
Prevention Specialists and some have attained Accredited
Financial Counselor (AFC) status with the AFCPE (AFCPE.org).
Pioneer Services has also initiated a curriculum called
"Break the Debt Cycle" and they are partnering with Park
University to provide on-line training and certification
for service members. For more information about Help
Loans, contact your local Pioneer Services Representative.
Full text of Pioneer Services Help Loans Press Release:
Pioneer Services 'Help Loan' a Responsible Alternative to
KANSAS CITY, MO - In order to offer an alternative to
payday loans, Pioneer Services created the "Help Loan" in
2003. This short-term installment loan is a one-time loan
of $500 with only $25.24 in interest and fees, payable in
four monthly installments with a 30-day grace period until
the first payment. It offers a disciplined and financially
responsible way for service members to get money for
unforeseen expenses and comes with the standard Pioneer
Services 15 day no-cost satisfaction guarantee.
"The Help Loan was created to give service members an
alternative to payday loans that is fiscally sound,
affordable, and can't be rolled over," said Pat McCarty,
Executive Vice President for Military Relations "It's a
terrific way for military families to obtain emergency
funds without getting caught in a never-ending cycle of
debt, something that happens frequently with payday loans,
check cashing services and title loans."
The Help Loan has been available for two years and is one
of the many Pioneer Services available to help service
members meet their cash needs and keep their focus on
their jobs rather than worrying about financial issues.
Recent studies have also suggested that predatory and
questionable lending Practices target the military
community, putting service members in financial harm's
One such study, Predatory Lending and the Military: The
Law and Geography of "Payday" Loans in Military Towns,
conducted by a pair of university professors, claims there
is "irrefutable geographic evidence" that payday lenders
actively and aggressively target military personnel.
"Because predatory lending Practices have become a huge
issue for military families, we are proactively marketing
the Help Loan as a better alternative," said McCarty.
For more information about Pioneer Services visit their
Web site. For more information about how to protect
against predatory lending and to read the study, go to
About the ICFE:
The Institute of Consumer Financial Education (ICFE) was founded in 1982 by the late Loren Dunton (creator of the Certified Financial Planner (CFP) designation). The ICFE is dedicated to helping consumers of all ages to improve their spending, increase savings and use credit more wisely.
The ICFE is an award winning, nonprofit, consumer education organization that has helped millions of people through its education programs and Resources. It publishes the Do-It-Yourself Credit File correction Guide, which is updated annually. The ICFE has distributed over one million Credit/Debit Card Warning Labels and Credit/Debit Card Sleeves world wide.
The ICFE became an official partner with the Department of Defense/Financial Readiness Campaign in June of 2004.The ICFE was an active partner in the California Student Debt Resource Awareness Project (CASDRAP) which resulted in a new web site: (studentdebthelp.org). CASDRAP disbanded in 2010, shortly after the web site project was completed. In 2011 the ICFE assumed the single sponsorship of the (studentdebthelp.org) web site and is now responsible for its content and operation.
The ICFE is also an on-line help for consumers who spend too much. ICFE's spending help was featured in PARADE Magazine in the Intelligence Report section. The money helps and tips are from the ICFE's Money Instruction Book, our course in personal finance.
Visit the ICFE's other web sites at: www.financial-education-icfe.org and studentdebthelp.org. Both sites helps consumers and students with mending spending, learning about the proper use of credit, budget and expense guidelines, how to set up and implement a spending-plan and also how to access financial education courses and how to teach children about money. Other ICFE services include: Ask Mr. G, a free eNews, and an online resource center for students, parents and educators, plus financial education learning tools and a book store.