Consumer complaint received 2023-10-16
Company: Army and Air Force Exchange Service
State: UT
Product: Credit card
Sub-product: Store credit card
Issue: Other features, terms, or problems
Sub-issue: Other problem

Complaint:
I am writing to provide further clarity regarding a prior complaint ( No. XXXX ) and to emphasize the ongoing issues I've experienced with the Army and Air Force Exchange Service ( AAFES ) Military Star Credit Card . These issues disproportionately affect veterans, touching upon various aspects of the card and its payment options, potentially violating key laws designed to protect military members. 

Discrimination Against Veterans : The AAFES Military Star Credit Card imposes restrictions on online payments, phone payments, and auto-pay for all members who have missed a payment. These restrictions remain in effect until a member has made six consecutive on-time payments. This restriction extends to all members, including veterans. However, this situation indirectly discriminates against veterans because in-store payment options are located on military installations, and access to these installations requires government certification, which many veterans do not possess. The process to obtain this certification for the sole purpose of making a payment is an unreasonable expectation and further discriminates veterans. 
Bill-Pay Delays and Unfair Responsibility : Due to the restrictions on online and phone payments, veterans are left with only two options, one of which is a feature called Bill-Pay utilizing XXXX XXXX XXXX XXXX XXXX XXXX XXXX . The concerning aspect of Bill-Pay is that it delays the subtraction of funds from the member 's account for up to three weeks after the initiation of payment. While AAFES Military Star Card backdates the payment to reflect when it was initiated, this still places an unfair responsibility on veterans, especially those facing financial struggles and living paycheck to paycheck. The delayed subtraction of funds from a member 's account can lead to NSF fees, resulting in more financial stress and even bounced payments. It is unreasonable to expect members to track a payment initiated three weeks prior. The delay in fund subtraction, especially when both AAFES and XXXX have the means to backdate payments, suggests that they are aware of the issue and the burden it places on members. 
Mail Payments as a Limited Option : The second payment option for veterans is mail, which, as the sole alternative means of payment, is subject to loss, delay, and even theft. This becomes even more problematic when there are only two payment options available for veterans, making it an unfair and illogical expectation for them. 
Violation of Laws : These restrictions on auto-pay, online payments, and phone payments, especially for XXXX service members with late payments, potentially violate several laws, including the Servicemembers Civil Relief Act ( SCRA ), Uniformed Services Employment and Reemployment Rights Act ( USERRA ), Fair Debt Collection Practices Act ( FDCPA ), and Fair Credit Reporting Act ( FCRA ). 
Continued Lack of Adequate Response : In my prior complaint ( XXXX XXXX. XXXX ), I outlined three key proposals for resolution, which I believe remain unchanged and fair : All veterans and members should have unrestricted access to make online payments and utilize auto-pay features, regardless of previous late payments. 
The negative remarks on my credit report should be reversed, with similar consideration extended to other veterans or XXXX service members facing comparable issues. 
In light of the treatment I have received from lending agencies and landlords due to the negative marks on my credit report before any potential reversal, I am requesting {$25000.00} as compensation for the hardships endured. 
I want to emphasize the urgency and importance of addressing these issues. Veterans should not face undue challenges when making payments or experience discrimination due to their military service status. I kindly request your intervention to thoroughly investigate this matter and guide AAFES to take necessary steps to address these concerns, ensuring compliance with laws meant to protect military members and providing an equitable experience for all cardholders. 

Additionally, I would like to highlight the lack of adequate response to my previous complaint, both through the old case number and my emails. Despite providing clear details, my concerns remain unaddressed, and my proposals for resolution remain unacknowledged. 

I appreciate your attention to this matter and look forward to a prompt and just resolution to these ongoing issues.

Company public response: Company has responded to the consumer and the CFPB and chooses not to provide a public response
Company response to consumer: Closed with explanation