Debt & Scam Advice for Leaders and Service Members

CPT Private RallyPoint Member — Fri, 15 Aug 2014 23:25:13 -0400

What DEBT & Scam advice do you have that assist military service members and leaders? I ask this question because every time I came across a new Soldier in my unit, I warned them of certain scams. I seen excessive hardship created as a result. Here are some things I have seen and some new insight would help so I can continue to watch out for them too.

1. USA Discounters - I truly dislike that these type of stores are here not to help the service member, but rather sell them: overpriced items, charge fees, and charge them an excessive APR.

http://www.nbcnews.com/business/consumer/usa-discounters-ordered-stop-scams-fined-50k-n181011

2. Education Scams - In 2004/2005, a scammer knocked on my door while living in the barracks at Fort Hood, TX. The scammer told me that they could sign me up for college. I was confused because I was already using TA and was enrolled in Central Texas College. What I found out was that the scammers were signing up Soldiers by having them sign a contract and required them to fork over $3000 - $5000 for unaccrediated college classes. What made the entire process worse what the scammers were doing was legal. The scammers sent books to their victims and would sue if the service member did not pay. The link below is something close to a certain scam.

http://www.cbsnews.com/news/alleged-scheme-targets-us-military-students-free-tuition-assistance/

3. Finally, the scam where they target Soldiers in the malls. I was very annoyed that SmartBuy and some other companies did not care about ripping off service members. They would tell service members that they could purchase an item through the use of an allotment or finance a purchase. They targeted Soldiers by selling Xboxes, computers, and other gadgets. They would sell laptops for 3x the costs, then charge a ridiculous APR, and add extra fees. When I was at Fort Gordon, I went to the mall as a 2LT waiting on Verizon to open. SmartBuy ran a booth that used a female employee who dressed to catch they eye of certain Soldiers. While waiting she kept trying to target me (thinking I new on the block) and got upset when I did not buy anything. Point is, I had Soldiers who owed $1000s for computers (that were only $300 computers) before deploying to Iraq because they made such purchases.

http://abc11.com/finance/scammed-military-members-receive-$92-million-debt-relief/226353/

What are other scams that you have come across that would help out others to be aware of?

The government has ordered a chain of furniture and appliance stores located near military bases to stop what it claims are misleading practices.

Response by PFC Private RallyPoint Member made Aug 16 at 2014 3:35 AM

PFC Private RallyPoint Member — Sat, 16 Aug 2014 03:35:04 -0400

I would like to add Harris Jewlwers to this list. Harris Jewlers seems to have a good financing program that will work off of allotments. The interest rates are not even that bad.
The reason they are not a good investment is the quality of what you are buying, if you go to any other jewlery store the person working the floor is more than happy to give you clarity of a diamond, its weight and overall quality. Harris is unable to give you these specifics, the true value of what you are buying is mostly undisclosed, simply due to a lack of knowledge from the people that work at Harris.
I ended up buying a ring for triple what it was worth...took it to a reputable jewler and learned my mistake. Luckily Harris does keep good on their return policy.

Response by CPT Private RallyPoint Member made Aug 17 at 2014 12:23 AM

CPT Private RallyPoint Member — Sun, 17 Aug 2014 00:23:31 -0400

Something I did when I was an E5 was call USAA. I had 3 store cards and a 14% APR on car. I did not know better. They gave me a 6% car loan and a $3000 loan to pay off the store cards with the loan being at a 10.99%, much better than the 18%. It was a good deal for still having weaker credit. I should have got the loan originally from USAA, Navy Fed, or Pen Fed.

Automax in TX did not have the best interest in finding the right loan and the store cards... just never get them, they work against your credit report. Now, there are even better ways to manage, but all options should be explored.

Response by SSgt Gregory Guina made Aug 17 at 2014 1:29 AM

SSgt Gregory Guina — Sun, 17 Aug 2014 01:29:35 -0400

Any place that advertises that they finance E1 or places that sell based on payments per payday and not a total price.

Response by PO1 Glenn Boucher made Aug 25 at 2015 2:11 PM

PO1 Glenn Boucher — Tue, 25 Aug 2015 14:11:05 -0400

The worst ones I saw was while I was stationed in Norfolk. The used car dealerships who advertised financing for E-1 and up.
They finance these kids and when the E-1 says he has to take the contract to his command legal for a look over the dealer gives the old "oh, if you have to go show your command then maybe your not ready to buy this and I can't guarantee that the car will be here tomorrow", then the worst part comes, the monthly payment is $400 plus and of course they don't accept allotments from your pay, you have to bring in a check or money order, then when you fall behind they do a "title loan" to cover the deficiency which now pushes your payment to $600 plus a month, soon your 3 months behind and they repossess the car, they resell the car to another sucker and your still stuck with your original loan.
The crazy thing is that it takes so long for the military to blacklist these predatory lenders.

Response by SSgt Boyd Herrst made Apr 1 at 2018 7:27 PM

SSgt Boyd Herrst — Sun, 01 Apr 2018 19:27:11 -0400

I did a little research and found the phone numbers for the bunco/fraud units for local and state police and FBI. I’d be at the mall and and approached by some feather merchant trying to run a scam on me.. I had the number in my wallet and I’d say I was kinda busy, let me get back with you.. and I ‘d kinda run off and find a place I Could check that number .. i’d Find them a little later and say why don’t you call me at work, here’s my number and we’ll discuss one of the plans.. thx for being so patient and I’d scoot off.. thinking that guy’s gonna be p.o.’d he got had.. when somebody answers and identifies themself as detective... i’ve Gone back to that mall and don’t see them .. maybe they decided to move on.. hope so..
i’ve Had my trick backfire..almost.. I seen a scammer again at a mall and he’s got another guy with him.. anyway the scammer points me out .. the guy with him is a police officer and he says Mr. Smith here says you misrepresented yourself as a police officer.. I says I never said I was, I said call this number and ...
I didn’t show no badge or card.. I was tired of getting scammed, so I gave him a
taste of his own medicine.. He does sell
Encyclopedias .. They’re almost out of date! I’d say.. These books are a scam.. take a look.. sure it’s a fantastic price
They’re not leather bound.. that’s faux , synthetic! .. Do you need me for anything else?... No, go on, I got this .. Guy was trying to get me busted saying I said I was a cop.. I didn’t think giving them a Bunko/fraud line could imply I was a LEO.
Got to be more careful in my choice of words ..

Response by SSgt Boyd Herrst made Apr 1 at 2018 8:17 PM

SSgt Boyd Herrst — Sun, 01 Apr 2018 20:17:33 -0400

I had a card through the Credit union on base and it was great because I didn’t get chsrged if there was no balance on the card. I usd it only for TDYs. I had only used it a few times. When I did I had the receipts from my meals and rooms for my vouchers.. I got my reimbursements and was good to go.. The Air Force and maybe other Services do is to schedule personnel for flights that are between meals.. or are milk runs.. a lot of stops and no chance to get s’thing to eat. So I bought a sub sandwich and put it in my brief case... had it on the last leg of the
Flight. So I had my receipt thst I filed with my voucher.. The Airman seen I bought it at the terminal in Pittsburgh.. Yeah, I had to get right back on the plane, got it st the kiosk across from the gate and ate it on the plane. Were meals issued on the plane, SSGT? No they weren’t I said..
then it’s not authorized he replied. How is that to do with me buying a sandwich at the kiosk and eating it on the plane I asked. Can you show me a regulation
Airman that says I can’t eat a sandwich
That I bought on the plane? Not an AF Reg but any Airline Reg would surely cover and we are expected to follow all regulations... So that makes my sandwich unallowed because I ate it on the plane..
you could have waited until after you were off the plane when it landed in Chicago.
I just realized i’d Been had I thought.. He strung me along.. He handed me back my paperwork and I took it to the pay window.. The clerk looked over my. voucher an receipts, checks them all off including the sandwich receipt .. then she counted out my reimbursement.. I learned to have money set aside, don’t take no advance, that way you don’t have to payback anything.. I was stuck at Dallas /Ft worth for Five hrs because the flight I was on left El Paso a little late and the plane at Dallas/Ft Worth left on time.
Why didn’t you get a room? $150 for 4 hrs? I don’t think so !... So I spent the night in the Terminal by the gate I would go out of.. Having the right card makes a difference too..

Response by Capt Private RallyPoint Member made Apr 1 at 2018 8:21 PM

Capt Private RallyPoint Member — Sun, 01 Apr 2018 20:21:10 -0400

Nobody is going to give you anything. If it sounds too good to be true it almost certainly is not true.

Response by HN Linda Sheffield made Feb 24 at 2022 9:52 AM

HN Linda Sheffield — Thu, 24 Feb 2022 09:52:50 -0500

Assure that any educational institution/program you are about to sign/pay into has fully recognized accreditations recognized by the board of education and the VA; otherwise, you can not apply them to other schools/jobs.