WASHINGTON, D.C.—Today, U.S. Representative Rahm Emanuel applauded the passage of Senate version of the Military Personnel Financial Services Protection Act sponsored by Senators Hillary Clinton (D-NY), Charles Schumer (D-NY) and Michael Enzi (R-WY). Emanuel introduced the House version of this legislation, H.R. 461, on February 1st, 2005. The Military Personnel Financial Services Protection Act would require that military personnel are provided with the knowledge and information they need to make responsible decisions regarding financial services and insurance products.

“Our young men and women in uniform deserve better than to be treated like ATMs by the financial services industry,” said Emanuel. “This legislation requires that enlisted personnel be educated so they can protect their savings while protecting our nation.”

According to investigations by the Department of Justice and the GAO, enlisted personnel are often subject to aggressive and unscrupulous marketing tactics by financial services and insurance companies. These companies sell life insurance policies to personnel who are already covered by the Servicemembers Group Life Insurance plan, and high-fee financial services products to junior personnel who lack financial experience. These products are often sold on military bases, giving the impression their services are being endorsed by the United States Military.

The Military Personnel Financial Services Protection Act will help protect enlisted personnel by:

• Requiring that the Department of Defense provide financial education for service members and their spouses.
   
• Providing full-time financial counselors for all military bases with over 750 personnel, and part-time counselors for all smaller bases.
   
• Requiring enlisted personnel to confirm that they have been informed of their federally provided life insurance benefits through the Servicemember’s Group Life Insurance (SGLI) plan before allotting part of their pay toward the purchase of private life insurance products.