Skip to comments.USA Discounters hooks some service members with credit before springing the debt trap
Posted on 07/25/2014 10:37:26 AM PDT by Second Amendment First
Army Spc. Angel Aguirre needed a washer and dryer.
Money was tight, and neither Aguirre, 21, nor his wife had much credit history as they settled into life at Fort Carson in Colorado in 2010.
Thats when he saw an ad for USA Discounters, guaranteeing loan approval for service members. In military newspapers and magazines, on the radio, and on TV, the Virginia-based companys ads shout, NO CREDIT? NEED CREDIT? NO PROBLEM! The store was only a few miles from Fort Carson.
We ended up getting a computer, a TV, a ring, and a washer and dryer, Aguirre said. The only thing I really wanted was a washer and dryer.
Aguirre later learned that USA Discounters easy lending has a flip side. Should customers fall behind, the company transforms into an efficient collection operation. And this part of its business takes place not where customers bought their appliances, but in two local courthouses just a short drive from the companys Virginia Beach headquarters.
From there, USA Discounters files lawsuits against service members based anywhere in the world, no matter how much inconvenience or expense they would incur to attend a Virginia court date. Since 2006, the company has filed more than 13,470 suits and almost always wins, records show.
Theyre basically ruthless, said Army Staff Sgt. David Ray, who was sued in Virginia while based in Germany over purchases he made at a store in Georgia.
(Excerpt) Read more at washingtonpost.com ...
Sounds like a combination of scummy predators and foolish military buyers.
I know some retailers charge high rates and play hardball to collect debts, but the bottom line is that any responsible adult should know that if you buy a number of big ticket items on credit, you are going to have to repay that credit plus interest. Our society has been so conditioned to get let off the hook that its destroying us. The consumers can talk all they want about being “tricked” or “hardball” tactics, but the bottom line is that they knowingly bought things they could not pay for and are now facing the consequences. I, for one, not willing to say that someone in the military has a right to not pay for things because they buy too much and get in over their heads.
This is how stupid women are. They’ll take an engagement ring from a guy who borrowed the money for it
From there, the story goes downhill
Girls, parents-A Visible Means Of Support AND A Plan
Or move on
Otherwise, I can say to the guy, read the agreement. We do the kids and I when these offers come in the mail. There was one with a 59% interest rate
On Long Island we used to call them ...well, you know
I look at them, these predatory scumbags who prey on our servicemen and women, as liberals (to put ‘scumbags,’ ‘***holes,’ etc., here, would be superfluous). They certainly have no love or affection for our men in uniform, which is an identifying trait of a liberal.
They’re like a bunch of greasy hypocritical Michael Moores lurking right outside the front gate. We all know about those little towns that spring up right outside the front gates of our big military bases... Depressing places! I used to go out the back gate just so I wouldn’t have to go through them.
Doing the same things with cars...”No credit?...No problem” is very popular on many TV commercials locally (near two major military onstallations).
I’ve got to agree with you. Over the years, I sat with many of our troops who had problems figuring out that they weren’t allowed to spend more than they made, and that they had to pay their bills. That isn’t a patriotism issue. It’s just a fact of life. If you buy that Shelby Mustang, then you have to pay for that Shelby Mustang.
First Sergeants were always on the lookout for crooked salesmen and they’d ban them. If there were crooked businesses outside the gates, they’d get them on the banned list.
But if you buy a washer, dryer, TV, ring, and whatever else, then it’s also on you.
The most important financial advice I ever got was: “Make a budget.” Income and Outgo. They’ve gotta balance, and a a budget is the best way to see that very quickly.
Predatory lending on service members? Wow. There’s a news flash.
I remember car dealers, literally outside the front gate, selling sports cars to non-rates. Of course they could not make the payment, would have the car repoed, it would be sold at a closed auction to a puppet dealer, a deficiency judgemnt would be had against the original purchaser, the car would be resold to another service member often with the same result.
I cannot begin to tell you how many sound systems were sold in a similar manner at Siagon Sam’s.
I completed the sentence for him.
If you don't have the money to pay for it, you can't afford it.
Agreed. These people indenture themselves when they sign up for credit and the fact that they can be literally made into sharecroppers is proof of that.
Screw the banks and screw the creditors; PAY CASH!!!!!
i suppose they had to have new, and didn’t consider used. whilst i tend to abhor those who take advantage of others, especially our service people, there comes a certain level of responsibility. go in for a washer/dryer, leave with all kinds of extras, is it really their faulty? entirely?
This has been a problem around military bases forever. It is quite a leadership challenge. The problem is that the slick merchants/lenders know full well how easy it is to get their money from a service member. Some of the slicksters are even former military themselves, which really makes me see red.
I literally sit down with new subordinates straight out of basic and walk them though how loans work, interest rates, investing, etc.
It’s an NCOs job to take care of his troops. That used to mean teaching him/her how to shoot, wear the uniform, etc. Now it involves teaching people how to put away money for the next time Congress cuts off our paycheck, how to not get scammed by the front gate vendors, even how to balance a budget.
When hubby and I got married we bought cheap gold wedding bands...because that is all we could afford.
10 years later he paid cash for a 1 carat loose diamond that I had set in something we could afford.
About 10 years after that the band it was set in fell apart and I took it to a jeweler and had it set in the band I wanted (along with a bunch of other diamonds lol). I also bought another ring to go with it. Now I have 5 carats on my finger in 2 gorgeous rings that is worth about $15k that we paid cash for along the line.
I don’t blame the companies I blame the people for being stupid.
That’s how it’s supposed to work.
Girls know nothing about providership. The boys learn real quick when it’s demanded of them, in terms of ‘get lost’.
Parents get the heck with it!
Where are the dads?
Yep...that’s the way it used to be...what always frosted me the most is when the PX would overcharge soldiers overseas who didn’t know they could get things they need downtown for half the price.
I use to teach a class for young soldiers, sailors, and airman that covered these types of traps. Unfortunately, most of them were already in deep trouble before they attended my class. The predators loved these young folks because they were gullible and the creditor knew that they could easily attach the young serviceman’s pay to get the money. Some of the predators charged as much as 6000% APR for things like payday loans.
“Some of the predators charged as much as 6000% APR for things like payday loans.”
Please tell me that’s a typo.
Nope. Not a typo.