Predatory Payday Lenders Ground Thousands of Troops

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This summer, Mother Jones reported on the ways the poor get taken by lenders who prey on the cash-strapped, including payday loans with average annual interest rates of 400%. It seems the government is finally paying attention. But it’s not the pound-of-your-flesh interest rates that have the government concerned. Rather, it’s the fact that soldiers whose debts amount to a third of their income cannot be sent overseas.

This policy exists because major financial problems are thought to make soldiers more vulnerable to bribes that would force them to reveal sensitive information. If that’s the case, it’s another example of the Bush administration hurting rather than helping national security. Since Bush took office, the number of sailors and Marines who could not be deployed as a result of financial problems has increased 150-fold.

Payday lending outlets cluster by the dozen around military bases, where soldiers are paid poorly. Currently, just 12 states have laws capping interest rates at 99%. Congress is now considering a law that would cap rates at 36%, and the Pentagon is on board. It’s about time.

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SIX TRUTHS

Reclaiming power from those who abuse it often starts with telling the truth. And in "This Is How Authoritarians Get Defeated," MoJo's Monika Bauerlein unpacks six truths to remember during the homestretch of an election where democracy, truth, and decency are on the line.

Truth #1: The chaos is the point.

Truth #2: Team Reality is bigger than it seems.

Truth #3: Facebook owns this.

Truth #4: When we go to work, we're in the fight.

Truth #5: It's about minority rule.

Truth #6: The only thing that can save us is…us.

Please take a moment to see how all these truths add up, because what happens in the weeks and months ahead will reverberate for at least a generation and we better be prepared.

And if you think journalism like Mother Jones'—that calls it like it is, that will never acquiesce to power, that looks where others don't—can help guide us through this historic, high-stakes moment, and you're able to right now, please help us reach our $350,000 goal by October 31 with a donation today. It's all hands on deck for democracy.

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