English: SACRAMENTO, Calif. -- Major Gen. Michael R. Lehnert, Commanding General, Marine Corps Installations West, appointed his top enlisted leader, Sgt. Maj. Wayne R. Bell, to testify before the State Senate May 23.

Sergeant Maj. Bell, local military leaders and consumer rights advocates testified before the State Senate during an informational hearing to combat consumer scams aimed at military servicemembers.

California State Sen. Liz Figueroa said there’s only so much that can be done to regulate negligent consumer behavior, despite the amount of overwhelming facts supporting legislative action to protect military consumers.

She arrived at this conclusion during the “Protecting Our Protectors: Confronting Consumer Scams Aimed at Military Personnel” informational hearing at the State Capitol here.

Sergeant Maj. Bell, Marine Corps Installations West Sergeant Major, expressed concern over predatory payday lender practices near Camp Pendleton’s Main Gate during the hearing to Figueroa.

The 92054 ZIP code, covering the Oceanside community surrounding Camp Pendleton’s Main Gate, has 68 payday lenders, the highest concentration for any of the state's 1,661 ZIP codes.

“Our Marines and Sailors are targeted because they have a guaranteed paycheck on the first and fifteenth of the month,” Sgt. Maj. Bell said. "The predatory lending is our number one concern when it comes to our Marine's financial status.”

“We have to educate our Marines, Sailors and families on this issue, and that’s what I intend to do,” said Maj. Gen. Lehnert. “Marine commanders have the responsibility to inform Marines on making sound financial decisions. An 800-percent annual percentage rate is not a sound financial decision.”

Major Gen. Lehnert hoped the California legislature would follow action taken by other states with a strong military presence, such as North Carolina. The Tar Heel state placed a 36-percent interest rate cap on loans and banned payday lenders.

Mission and deployment readiness also suffers at the hands of consumer abuse and negligence. The Marine Corps and Navy denied security clearance to about 2,000 servicemembers nationwide last year for fear that their indebtedness could compromise key operations.

“It drastically affects readiness to deploy, and as everyone here knows, the Marines constantly deploy," Sgt. Maj. Bell said.

“The resources we expend (combating payday lenders) is money and time not spent on our primary job,” said Navy Capt. Mark D. Patton, commanding officer, Naval Base Point Loma.

Rosemary Shahan, president of Consumers for Auto Reliability and Safety, stated that the number one consumer safety problem identified is auto-related scams, followed by payday lenders.

The consumer abuse has “a pervasive impact on troops,” Shahan said.

One concern all three panels addressed was the lack of consumer protection under California state law for servicemembers purchasing vehicles and taking out loans in other states.

“Why should they get less protection? If anything, they deserve more,” said Jennifer Contreras, director, Navy-Marine Corps Relief Society, Lemoore.

Ellen Turnage, an attorney specializing in lemon law, auto fraud and consumer protection, testified on behalf of her client, Navy Lt. Nathan C. Kindig.

Nathan Kindig, a physician’s assistant stationed at Naval Hospital Camp Pendleton, but currently deployed to Iraq, purchased a 2004 Dodge Dakota Oct. 8, 2003, in Washington. Kindig contacted his attorney and informed her that his vehicle had overheated several times. On one occasion, he and his family were stranded out of state.

Kindig brought his vehicle in for repair at least five times, but the vehicle was never repaired.

Due to the California Song-Beverly Consumer Warranty Act Limited Policy Coverage, Kindig is now left stranded again – this time, in California.

“California’s Song-Beverly does not protect vehicles purchased outside of California. We are one of the few states with that limit. Several states protect vehicles which are either purchased or registered within that state,” Turnage said.

Kindig currently pays $540.13 a month on a vehicle he cannot drive. According to DaimierChrysler Corporation, the defendant in the case, they would have repurchased the vehicle immediately upon receiving Turnage’s notice and demand letter – if the vehicle was purchased in California.

“A lemon is a lemon. This has to change for our military personnel in California. We owe this extra level of protection to our protectors. We need to expand statutes to protect our military who are guests in our state,” Turnage said.

“When he has free time from his duties as a physician’s assistant, (Kindig) needs to send e-mails and make phone calls to his family, not his attorney,” Turnage said.

No immediate action was taken following the testimonies from the three panels. Figueroa opted instead to focus the effort on educating servicemembers and their families.

“If I’m just finding out about this, I’m sure there are many others who don’t even know this is occurring,” Figueroa said. “We need to educate our military and their families.”