How to Swindle Soldiers

LTC Jason Strickland — Mon, 28 Jul 2014 09:17:25 -0400

According to The Washington Post, these three companies: USA Discounters, Freedom Furniture and Electronics, and Military Credit Services, sell goods to service members on credit and then, if they fall behind, go after them in Virginia courts, regardless of where the service members are based. Together the three companies have filed 35,000 lawsuits in a little under a decade.
Anybody deal with these companies? Any others we should know about?
Definitely candidates for a commander's list of off limits establishments!

http://www.theatlantic.com/business/archive/2014/07/how-to-swindle-soldiers/375090/

35,000 Lawsuits Against Soldiers Struggling to Pay Their Bills

A new report from ProPublica highlights three companies that have made a business out of suing service members.

Response by MSG Wade Huffman made Jul 28 at 2014 9:46 AM

MSG Wade Huffman — Mon, 28 Jul 2014 09:46:30 -0400

I have heard of at least one of these companies and they do advertise (heavily) around military installations. I fairly sure I've even seen their flyers in post newspapers in the past as well. It's bad enough that they are exploiting service members on the initial purchase (2-3 times the value of the item sold at a minimum); but to then use a loophole in the law to preclude the ability of the service member to represent themselves is unconscionable.
I agree that Commanders (or even the services themselves) should unite and place these businesses 'off limits'.

Response by Capt Private RallyPoint Member made Jul 28 at 2014 10:33 AM

Capt Private RallyPoint Member — Mon, 28 Jul 2014 10:33:34 -0400

As a military and society in general we need to begin taking some personal responsibility for our actions. Are the actions of these companies terrible? Sure. However, these companies only sue when the purchase contract has been violates. It is our job as officers and senior enlisted to educate junior enlisted and officers on financial responsibility. The Stars and Stripes article highlights a couple who bought well more than they intended... That was their choice and the companies cannot force purchases. A commander's blacklist just shifts responsibility from the individuals and facilitates excessive management over daily lives when more constructive solutions abound.

Response by LTC Jason Strickland made Jul 29 at 2014 9:42 AM

LTC Jason Strickland — Tue, 29 Jul 2014 09:42:23 -0400

This blatant exploitation of our junior service members still fires me up. Any other companies out there operating like this?

Response by CPT Richard Riley made Jul 29 at 2014 10:52 AM

CPT Richard Riley — Tue, 29 Jul 2014 10:52:22 -0400

We return to educating about financial issues early and often. Sadly we cant prevent a junior enlisted member from entering into these sorts of binding contracts but we can strongly advise them otherwise & give them ample reasons to dissuade them making that choice.

It is a choice - like it or not. I think it goes to mind set and having tangible money for the first time with little to no spending control patterns for experience. This is just another example of 'we can't protect you from yourself'.

Do these companies 'prey' on vulnerable members ... yes, that is what the business model is designed to do. Educate, educate, educate - that is what we can do and hope the knowledge is absorbed.

Response by MAJ Robert (Bob) Petrarca made Jul 29 at 2014 11:07 AM

MAJ Robert (Bob) Petrarca — Tue, 29 Jul 2014 11:07:00 -0400

Thank you sir for posting this. Any company that would go after anyone like they do is nobody any of us should be doing business with.

Response by Cpl Brett Wagner made Jul 29 at 2014 12:26 PM

Cpl Brett Wagner — Tue, 29 Jul 2014 12:26:06 -0400

Pretty hard for a company to get any lower than stealing from military servicemen and women. The very people who protect these same belly whopping slime are getting taken to the cleaners by them.

Response by SSgt Gregory Guina made Jul 29 at 2014 12:38 PM

SSgt Gregory Guina — Tue, 29 Jul 2014 12:38:06 -0400

We have a freedom out here in Oceanside just outside of Camp Pendleton. I have seen their advertisements and they always show what the price per pay day is. The other big thing they talk about is financing E1 and up. Basically this goes into the same group when I brief my new joins as the local used car lots. Basically anything that advertises proces by pay period or that they finance E1 and up should be avoided as they are going to have astrnomical interest rates. Also don't worry about monthly payments as much as you worry about total price paid.

Response by Cpl Brett Wagner made Jul 29 at 2014 1:22 PM

Cpl Brett Wagner — Tue, 29 Jul 2014 13:22:44 -0400

With all the swindlers out there, some vendors do give real discounts to military and veterans. I was with my daughter and son in law eating in a place called Nando's Peri Peri I had on one of my Marine Corps shirts and when I went to pay the young guy at the cash register asked if I was a vet and I said yes the discount was 20%. I thought that was pretty good. I also laughed when he said he always gives it to soldiers and Marines. lol

One business I have found at a government conference is http://www.govx.com/ any vet or active member can sign up and sometimes you get a good discount sometimes not but you don't have to buy. BTW they have everything from sunglasses to bikes etc.

We here on RP should start a list of legit discounts with percentages & other info. for military & vets.

Opinions?

Military & Government Discounts on 250+ Brands | GovX

The largest Military & Government exclusive ecommerce site offering discounts up to 50% off current season goods from 250+ top lifestyle and tactical brands.

Response by CPT Richard Riley made Jul 29 at 2014 9:04 PM

CPT Richard Riley — Tue, 29 Jul 2014 21:04:12 -0400

Found this today .....

http://www.armytimes.com/article/20140729/NEWS/307290069/17-000-troops-debt-relieved-settlement-loan-company?sf29140030=1

Response by CPT Richard Riley made Aug 15 at 2014 11:33 AM

CPT Richard Riley — Fri, 15 Aug 2014 11:33:59 -0400

USA Discounters Fined, Must Stop Unfair Practices
Stars and Stripes | Aug 15, 2014 | by Patrick Dickson

WASHINGTON -- The Consumer Financial Protection Bureau on Thursday ended a scam run by USA Discounters Ltd., a company that operates a chain of retail stores near military bases and offers financing for purchases, according to a news release.

Full Story: http://www.military.com/money/personal-finance/2014/08/15/usa-discounters-fined-ordered-stop-unfair-sales-practices.html?comp= [login to see] 70&rank=2

USA Discounters Fined, Must Stop Unfair Practices

The CFPB ended a scam by USA Discounters, a company with a chain of retail stores near bases offering financing for purchases.

Response by CPT Richard Riley made Oct 22 at 2014 3:29 PM

CPT Richard Riley — Wed, 22 Oct 2014 15:29:10 -0400

Here is a new article in Army Times about this issue:

http://www.armytimes.com/article/20141022/NEWS01/310220053/Commentary-Breaking-cycle-debt-troops-families?sf32852226=1

The spouse of a member of the Illinois National Guard took out a loan of $2,575 in Illinois. Due to triple-digit interest rates, the family spent more than $8,000 to repay the loan.

In South Carolina, a service member took out a $1,615 loan. The total interest charges? Over $15,000.

These stories of unfair and abusive lending practices that target service men and women are all too common. Payday lenders, car title lenders and other high-cost lenders crowd around military bases and aggressively market to military families.

Once an unaffordable loan is taken, subsequent loans are needed to pay off the previous ones creating a long term cycle of debt. In fact, the Defense Department found that more than one in 10 troops have taken out a high-cost loan.