Comments on: NYT on auto title loans https://www.overlawyered.com/2015/01/nyt-auto-title-loans/ Chronicling the high cost of our legal system Mon, 19 Jan 2015 02:07:41 +0000 hourly 1 By: Hugo S. Cunningham https://www.overlawyered.com/2015/01/nyt-auto-title-loans/comment-page-1/#comment-318075 Mon, 19 Jan 2015 02:07:41 +0000 http://overlawyered.com/?p=50839#comment-318075 I will reserve judgment on the civilian market, but the crackdown on high-interest loans to the military was a good idea. Instead of taking second and even third jobs to try to pay back debt they can’t afford, military members are diverted early to their commanders and base social services, who can help them get loans from credit unions and advice on how to set up a budget they can live with. Soldiers are a good risk for base credit unions, because borrowers know their bosses will make life unpleasant for them if they default for dubious reasons.

The credit union model should be promoted by the Feds for the millions of “unbanked” outside the military, providing a free (no bank fees) and safe way to save enough money for the sort of emergencies currently covered by payday loans. In addition to savings and withdrawal, subsidized free Federal accounts might provide debit cards, but not checks or credit cards.

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