Military Consumer Protection

The Consumer Financial Protection Bureau (CFPB) and the Federal Trade Commission (FTC) have oversight over consumer issues. Most states have some type of consumer protection enforcement unit, as well. Laws exist to protect all consumers, including military personnel.

            Overview of the Servicemember's Civil Relief Act The SCRA was created in order to reduce the impact and immediacy of civil legal matters by providing special protections to servicemembers. NACA strives to protect servicemebers who have been victimized by fraudulent, abusive, and predatory business practices. The SCRA deals with a wide variety of rights ranging from modification of contract rights all the way to court intervention prior to taking of property. For any legal advice and assistance you may contact your Legal Assistance office which can be found through http://legalassistance.law.af.mil/content/locator.php

Consumer Financial Protection Bureau, Office of Servicemember Affairs

            Office of Servicemember Affairs Semi-Annual Complaint Report The CFPB began consumer response operations on July 21, 2011 and became the first federal agency solely focused on consumer financial protection. The Dodd-Frank Wall Street Reform and Consumer Protection Act of 2010 ("Dodd-Frank Act") created the Bureau to protect consumers of financial products or services and to encourage the fair and competitive operation of consumer financial markets. Taking in, resolving, and analyzing consumer complaints is an integral part of the CFPB's work, as Congress set forth in the Dodd-Frank Act. The office of Servicemember Affairs works with the Bureau's Consumer Response team on complaints submitted by servicemembers, veterans, or their spouses and dependents, providing subject-matter expertise and helping to monitor complaints. Visit www.consumerfinance.gov/complaint for more information.

           Pension Advance Products An area of concern is so-called pension advances-- offers to pay military retirees a lump-sum payout in return for their monthly retirement payments. These products might amount to payment of only pennies on the dollar, and the so-called advances are reported to carry interest rates from 27 to 106 percent, threatening many older borrowers' safe retirement. There are many offers on the internet, often with patriotic-sounding names and logos. Here's what to do if offered a pension advance: say no to arrangements that allow a creditor to access the account where you get your benefits. Get trusted financial expert advice if you need emergency funds. Other options may be less costly. Find answers to common consumer questions at www.consumerfinance.gov/askcfpb Tell us your pension advance product experiences at https://help.consumerfinance.gov/app/tellyourstory tag it "pension advance loan."

            GI Bill An issue affecting student veterans concerns the GI Bill. Specifically, there has been aggressive marketing to veterans and their families by some institutions of higher education, which may also encourage the use of expensive private student loans to pay for the tuition and fees not covered by the GI Bill. For-profit colleges have an extra incentive to enroll veteran students: the 90-10 proprietary college federal funding cap. For-profit colleges must get at least 10% of their revenue from sources other than Title IV federal education funds administered by the Department of Education. GI benefits are not Title IV funds, and we have heard of questionable recruiting tactics towards GI Bill recipients. Find Paying for College tools at www.consumerfinance.gov/paying-for-college/. Tell us your experience at https://help.consumerfinance.gov/app/tellyourstory. Submit a complaint at www.consumerfinance.gov/complaint.

            Aid and Attendance Benefit Severely disabled veterans who are eligible for a VA pension and require daily assistance may be eligible for the Aid & Attendance benefit; the veteran's assets are considered, and must be below a certain threshold. Some individuals and companies use this benefit as a hook to sell services, offering help obtaining benefits but requiring customers to sign up for financial services first, then moving assets into irrevocable trusts for qualification. For more FTC info: www.consumer.ftc.gov/articles/0349-poaching-veterans-pensions

            Mortgage Advertisements. Several mortgage lenders were recently put on notice by the CFPB and the Federal Trade Commission (FTC) for potential violations of the Mortgage Acts and Practices Advertising Rule. Many of these advertisements seem to be directed at veterans, promising special deals or implying VA approval. Others use the lure of a "no-payment" reverse mortgage to troll for older Americans desperate to stay in their homes. Find information and other financial products at www.consumerfinance.gov/askcfpb. Get FTC info at http://www.consumer.ftc.gov/topics/home-loans.