Dover Airmen receive tips on how to avoid, report consumer fraud

  • Published
  • By Master Sgt. Veronica Aceveda
  • 512th AW Public Affairs
DOVER AIR FORCE BASE, Del. --  When service members find themselves the victim of a deceptive financial purchase or unreasonable contract terms Joseph R. "Beau" Biden III and Holly Petraeus want to know about it. Biden, who is Delaware's attorney general, and Petraeus, who is the director of the Consumer Financial Protection Bureau's Office of Servicemember Affairs, visited Dover Air Force Base, Del., Jan. 20 and addressed these types of issues at several forums on base.

During a press conference at the Landings Club, Petraeus said the purpose of their visit was to help educate service members on some financial pitfall areas and find out what the most pressing financial issues are for military members surrounding Dover AFB, whether it be car loans or internet scams.

Responding to a question from a newspaper reporter regarding impractical purchases made my service members, Petraeus responded, "We're not here to tell them what they should or should not buy; but, if they are going to buy, I want them to buy with the best possible terms."

Following the press conference, the attorney general and the wife of CIA Director David Petraeus, chaired a town hall meeting inside the Landings Club, where about 100 service members listened and participated in an interactive session centered on local personal testimonies.

Senior Master Sgt. Patrick Piazza, 436th Aerial Port Squadron first sergeant, raised the issue of whether or not it was possible to regulate interest loans on car dealerships.

"I've got an Airman with a 26 percent interest rate on a car loan," he said. "He's making payments on his down payment."

Unfortunately, the "Buy here, pay here" places can charge their own fees, said Petraeus, who added the average mark-up is typically 100 percent on these types of car loans.

Biden said there are certain caps of interest rates in some realms, but this wasn't one of them.

"That's why it is so important to look at the total to be paid during the life of the loan," said Biden, who aids the government in fulfilling its core mission of protecting the public and serves as an Army National Guard judge advocate general. "There are unsavory people just waiting to target buyers with a low monthly payment for a few years, and then it balloons the last year."

When purchasing a car, Petraeus reminded the active-duty and Reserve members in the audience about the importance of asking specific questions such as:

    - Can I take the car overseas if payments are still being made?
    - Where will the extended warranty work?

For reservists here, 512th Airman and Family Readiness reported the following items as some of the more common financial issues:

    - The inability to pay travel related expenses when a travel voucher is not processed in a timely manner;
    - Medical debt for uninsured families;
    - Entering into contractual agreements they don't understand such as pay day loans.

Master Sgt. Laura Coseglia, 512th AF&R director, attended a round table session with Biden and Petraeus. She was one of several service providers to include mental health, legal, housing and education and training who gave examples of areas where Airmen have gotten into some financial trouble.

"They were very familiar with all the issues we brought to the table, especially mortgages and foreclosures," said Coseglia.

"Twenty-five percent of homeowners are underwater," Biden said that afternoon. "And, that includes service members; but, service members experience unique hurdles that civilians don't."

Petraeus addressed the areas that make it challenging for military homeowners. They include service members:

    - Having to move for a (permanent change of station);
    - Not being able to address a loan modification unless their mortgage is delinquent;
    - Not willing to let their mortgage fall behind due to consequences on security clearances;
    - Relocating to a new assignment and not being able to refinance due to their mortgaged home not being their primary residence.

She added, more and more service members are leaving their families behind when they PCS to a new assignment because of the housing situation.

"We should not be forcing our service members to go bankrupt, go delinquent or leave their families while asking them to fight wars ...," said Biden in regards to some of the hurdles in practice at banks and loan institutions.

"But, we can't enforce any standards, if we don't have any of the stories," said Petraeus, who provided both an e-mail and website address where service members can file a complaint.

They are military@cfpb.gov and www.consumerfinance.gov.

In addition to monitoring and managing complaints, the CFPB partners with the Pentagon to oversee financial education for military families and federal and state agencies in coordinating with each other on their activities geared toward consumer protection measures for military families.

Since the website opened for credit card-type complaints in July 2011, the CFPB has managed to recoup $43,000 for consumers. In December 2011, the website began accepting mortgage-related complaints.

"We now have direct access to people who can help our military members facing financial issues," said Coseglia. "This visit was really good, because it gave us access to resources we didn't have before."

While Biden said his office is committed to addressing bad business practices for the state, he's especially thankful for Petraeus who continues to serve all branches of the service in this capacity at the national level.