May 2017

The Office of 

Servicemember Affairs: 

Charting our course 

through the military 

lifecycle

A look back into where we have been 

and a look forward to our work ahead
 CHARTING OUR COURSE THROUGH THE MILITARY LIFECYCLE 1

Message from 

Paul Kantwill

Assistant Director for the Office of Servicemember Affairs

Greetings from the Office of Servicemember Affairs (OSA) at the Consumer Financial Protection 

Bureau (CFPB). As the CFPB and the OSA progress through our sixth year of existence, we 

present our annual report concerning issues raised and complaints submitted by 

Servicemembers, Veterans, and their families. 

We have published three previous annual reports to date, but you will note considerable 

differences in this iteration. Most notably, we have a new Associate Director for the OSA. Holly 

Petraeus, a well-respected voice in military and consumer protection circles, has departed from 

the CFPB for a richly-deserved retirement, and we applaud her life-long record of exemplary 

service to our Nation. It is my singular honor and privilege to succeed—but certainly not 

replace—her.

Another notable difference you will find is the structure of this report. Our recent 5-year 

anniversary has allowed us an opportunity to contemplate the past and think differently about 

the future. Thus, this report does much more than provide data and look at trends from 

consumer complaints. It also provides a retrospective look back over our first five years and our 

continued work ahead. We continue to be especially focused on designing educational programs 

or products that help to provide information essential to allowing our servicemembers, veterans, 

and their families to succeed in an increasingly-complex financial marketplace.

Another note about our approach. This year, we are presenting our report within the construct 

of the “military lifecycle”—attempting to consider issues and complaints in the very context in 

which they arise. When we refer to the military lifecycle (and you can see a graphic 
2 THE OFFICE OF SERVICEMEMBER AFFAIRS

representation of the lifecycle at page 12), we mean just that: a military career beginning with 

the signing of an enlistment contract at the recruiter’s office through basic training and 

advanced individual training, and through all the subsequent steps in both an individual and 

family’s life and in a military career along the way. This approach explains to all of our readers 

what a “military life” looks like and how the many common and some uniquely-military 

consumer issues facing those who serve fit within that continuum. We hope this gives all 

readers a greater appreciation of the multiple financial challenges many servicemembers and 

families face as they progress from recruit to Soldier, Sailor, Airman, Marine, or “Coasty” and 

then become a midcareer veteran or a veteran retiree. 

This holistic approach affords us a wonderful opportunity for even greater collaboration within 

the CFPB, the Inter-Agency community—including our valued partners at the Department of 

Defense (DoD) and the Military Departments and Services, and with State and local partners. A 

final note: our intent with this report and with our approach is to help those in need. We

identify issues, pose potential solutions, create educational materials, and fill gaps. 

Thank you for your support of those most deserving of it.

Sincerely, 

Paul Kantwill

Assistant Director for the Office of Servicemember Affairs
 CHARTING OUR COURSE THROUGH THE MILITARY LIFECYCLE 3

Table of contents

Message from Paul Kantwill....................................................................................... 1

Table of contents......................................................................................................... 3

1. Overview of the Consumer Financial Protection Bureau ................................. 5

Consumer Education and Engagement.............................................................6

2. Fulfilling OSA’s mission....................................................................................... 8

Educate and empower....................................................................................... 8

Monitoring complaints ......................................................................................9

Coordinate efforts with state and federal agencies .........................................10

3. Charting OSA’s course through the military lifecycle .................................... 12

Delayed entry period........................................................................................ 14

Recruit basic training....................................................................................... 15

First permanent duty station.......................................................................... 22

Significant life events .......................................................................................25

Subsequent Permanent Change of Station (PCS) moves ............................... 30

Deployment/Post deployment transition....................................................... 36

Reenlistment/Promotion.................................................................................41

Transitioning out of Active Service................................................................. 48

Veteran status ..................................................................................................52
4 THE OFFICE OF SERVICEMEMBER AFFAIRS

4. Where OSA is headed ........................................................................................ 55

Appendix A: Educational resources.................................................................... 57

Appendix B: OSA by the numbers....................................................................... 69

Appendix C: More about the CFPB...................................................................... 72

Appendix D: Military lifecycle resource handout............................................... 73
 CHARTING OUR COURSE THROUGH THE MILITARY LIFECYCLE 5

1. Overview of the Consumer 

Financial Protection Bureau

The Dodd-Frank Wall Street Reform and Consumer Protection Act (Dodd-Frank Act) created 

the Consumer Financial Protection Bureau (“CFPB”) as the Nation’s first federal agency with a 

mission of focusing solely on consumer financial protection. The CFPB’s mission is to make

consumer financial markets work for American consumers, responsible businesses, and the 

economy as a whole. The Dodd-Frank Act was enacted in 2010, in the wake of the financial 

crisis, in recognition of the need to address widespread failures in consumer protection and the 

rapid growth in irresponsible lending practices that preceded the crisis.1 The Dodd-Frank Act 

charged the Bureau with, among other things: 

§ Ensuring that consumers have timely and understandable information to make 

responsible decisions about financial transactions;

§ Protecting consumers from unfair, deceptive, or abusive acts and practices, and from 

discrimination; 

§ Monitoring compliance with Federal consumer financial law and taking appropriate 

enforcement action to address violations; 

 

1 Previously, seven different federal agencies (the Federal Reserve Board (and the Federal Reserve Banks) (Board or 

FRB), Department of Housing and Urban Development (HUD), Federal Deposit Insurance Corporation (FDIC), 

Federal Trade Commission (FTC), National Credit Union Administration (NCUA), Office of the Comptroller of the 
6 THE OFFICE OF SERVICEMEMBER AFFAIRS

§ Identifying and addressing outdated, unnecessary, or unduly burdensome regulations; 

§ Enforcing Federal consumer financial law consistently in order to promote fair 

competition; 

§ Ensuring that markets for consumer financial products and services operate 

transparently and efficiently to facilitate access and innovation; and 

§ Conducting financial education programs2

Consumer Education and Engagement

The CFPB is divided into six divisions supported by a central front office; each division is 

responsible for carrying out various functions3 The Office of Servicemember Affairs is located in 

the Consumer Education and Engagement (CEE) division.

In general, CEE is responsible for developing and implementing initiatives to educate and 

empower consumers to make better-informed financial decisions to serve their own life goals. 

CEE includes six program offices supported by a central front office: Consumer Engagement and

Financial Education, and four population-specific offices: the Office of Servicemember Affairs, 

the Office for Older Americans, the Office for Students and Young Consumers, and the Office of 

Financial Empowerment, which serves economically vulnerable consumers. The special 

population offices allow the CFPB to develop targeted education and policy initiatives to support 

the financial well-being of particular segments of the consumer population. 

 

2 See Dodd-Frank Act, Pub. L. No. 111-203, Sec. 1021 (b) and (c).

3 In addition to the CFPB’s Front Office , the divisional offices include: Consumer Education and Engagement; 

Supervision, Enforcement, and Fair Lending; Research, Markets, and Regulations; Legal Division; External Affairs; 

and Operations. For an up to date version of the Bureau’s Organization Structure see, 

https://www.consumerfinance.gov/about-us/the-bureau/bureau-structure/. 
 CHARTING OUR COURSE THROUGH THE MILITARY LIFECYCLE 7

For example, our Office of Servicemember Affairs understands that as a servicemember 

progresses through the military lifecycle, they often transition in and out of the scope of the 

other population offices; and therefore, the work of these offices can also be a resource for the 

military community as well. More information about the specific resources these offices offer 

that are relevant to stages in the military lifecycle can be found in Appendix A: Educational 

Resources.
8 THE OFFICE OF SERVICEMEMBER AFFAIRS

2. Fulfilling OSA’s mission

The Dodd-Frank Act created the Office of Servicemember Affairs (OSA). OSA strives to see that 

military personnel and their families receive a strong financial education so they can make 

informed consumer decisions to meet their own financial goals; monitor their complaints about 

consumer financial products or services; and coordinate with the efforts of Federal and State 

agencies to improve consumer protection measures relating to those products or services for 

military families.4 OSA works for Active-Duty, Reserve, and National Guard personnel as well 

as for military retirees, veterans, and their families. 

Educate and Empower 

One integral component of our mission is to educate and empower servicemembers, veterans 

and their families to make informed decisions regarding consumer financial products and 

services. This report will detail the various ways in which OSA engages in consumer education.

OSA seeks to provide assistance to servicemembers, veterans and their families with tools and

resources to increase their capability to make financial choices that support their financial wellbeing. From providing early education through the Delayed Entry Program (DEP) to assisting 

transitioning veterans with financial coaching, OSA seeks to support servicemembers with 

education tools and efforts that respond to their stage in the military lifecycle.

 

4 See Dodd-Frank Act, Pub. L. No. 111-203, Section 1013(e)(1)
 CHARTING OUR COURSE THROUGH THE MILITARY LIFECYCLE 9

Monitoring complaints

The challenges consumers face in navigating, obtaining, and successfully using financial 

products and services are a driving force behind the CFPB’s efforts to make consumer financial 

markets work better. Listening to the issues the military community faces is an integral 

component of our mission; and one way we do this is by monitoring the complaints submitted 

by servicemembers, veterans, and their dependents (collectively referred to as, 

“servicemembers”). This report will summarize many of the efforts OSA engaged in over the past 

six years due to issues reported in complaints.

As of April 1, 2017, the CFPB handled approximately 74,800 complaints submitted by 

servicemembers, veterans, and their families. Approximately 74 percent of all servicemember 

complaints were submitted through the CFPB’s website and 16 percent via telephone calls. 

Referrals accounted for 5 percent of all servicemember complaints received, with the remainder 

submitted by mail, email, and fax.5

 

5 This analysis excludes multiple complaints submitted by a given consumer on the same issue, and whistleblower 

tips. All data is current through April 1, 2017. Since launching Consumer Response operations on July 21, 2011 

through March 31, 2017, the CFPB received approximately 1,163,200 consumer complaints. The CFPB has used a 

phased-in approach to expand its complaint handling over time to include multiple products and services under its 

authority. Complaint-handling capacity was expanded as follows: credit card complaints on July 21, 2011, mortgage 

complaints on December 1, 2011, bank accounts and services, private student loans, and consumer loans on March 1, 

2012, credit reporting on October 22, 2012, money transfers on April 4, 2013, debt collection on July 10, 2013, 

payday loans on November 6, 2013, prepaid cards, credit repair, debt settlement, and pawn and title loans on July 19, 

2014, virtual currency on August 11, 2014, and Federal student loan servicing on February 26, 2016.
10 THE OFFICE OF SERVICEMEMBER AFFAIRS

FIGURE 1: SERVICEMEMBER COMPLAINTS BY PRODUCT6

Coordinate efforts with state and federal 

agencies

It is OSA’s objective to work closely with and coordinate our efforts among Federal and State 

agencies, as appropriate, regarding military consumer protection in the consumer financial 

products and services offered to, or used by servicemembers. 

Since the Bureau opened its doors, OSA has made a concerted effort to collaborate with other 

federal agencies and various non-governmental organizations to support nationwide savings, 

financial literacy and consumer protection initiatives geared to the military community. For 

example, OSA participates in both the annual nationwide Military Saves Week campaign 

sponsored by the Consumer Federation of America and co-sponsors the year-round Military 

 

6 Percentages may not sum to 100% due to rounding. 
 CHARTING OUR COURSE THROUGH THE MILITARY LIFECYCLE 11

Consumer campaign on savings along with the Federal Trade Commission (FTC), the DoD, and 

Military Saves. OSA also assists state agencies and officials in proactively reaching out to their

military community by conducting activities such as joint outreach events with 22 state 

attorneys-general and 21 state adjutants- general.

In addition, OSA works closely with the Department of Justice (DOJ) on issues related to the 

Servicemembers Civil Relief Act (SCRA) and the DoD on issues related to the Military Lending 

Act (more detailed information on both of these to follow).
12 THE OFFICE OF SERVICEMEMBER AFFAIRS

3. Charting OSA’s course 

through the military lifecycle

The CFPB created this graphic to depict one model of the military lifecycle. This graphic model is intended 

to give readers a better understanding of the substantive concepts and issues contained within the report. 
 CHARTING OUR COURSE THROUGH THE MILITARY LIFECYCLE 13

Long before the creation of the CFPB and OSA, the DoD highlighted their concerns about the 

financial fitness of the force, stating in a report that predatory lending “undermines military 

readiness, harms the morale of troops and their families, and adds to the cost of fielding an allvolunteer fighting force.”7 The updates to the National Defense Authorization Act (NDAA) for

fiscal year 2016 included a requirement that the Department of Defense and all the military 

services implement financial literacy training upon entry into service and at various points in 

the servicemember’s career lifecycle.8 This new requirement reflects the fact that financial 

readiness is an ongoing need through various stages in the military lifecycle and it is important 

to provide continuous education as a servicemember’s life, financial goals, and circumstances 

develop and change (e.g. marriage/divorce, change of duty stations, promotion, etc). 

When testifying before the Personnel Subcommittee of the Senate Armed Services Committee

about military readiness, Chief Master Sergeant of the Air Force, James A. Cody, elaborated 

about OSA’s role in helping the DoD with the financial readiness of the force,

“We’re never going to be experts within the Department of Defense on this 

type of money management – it’s not what the American people expect us to 

do... They are experts...their sole focus is on that.”9 

Thus, we have made it a critical component of OSA’s mission to focus our expertise and efforts 

on the financial hurdles that occur throughout the military lifecycle. Below, we examine the 

issues facing the military consumer throughout the various stages they may experience in their 

military career – starting with those who enter through the Delayed Entry Program. 

 

7 Department of Defense: Report on Predatory Lending Practices Directed at Members of the Armed Forces and Their 

Dependents (2006). 

8 See P.L. 114-92 (S. 1356), Sec. 661

9 https://www.armed-services.senate.gov/imo/media/doc/17-10_02-14-17.pdf
14 THE OFFICE OF SERVICEMEMBER AFFAIRS

Delayed entry period

Misadventures in Money Management helps fill the critical 

gap in financial education for delayed entry participants

While the services provide a financial education class during basic training, the information is 

not always well absorbed due to the rigorous physical, emotional, and temporal demands of that 

time. As a result, many young servicemembers may leave basic training not yet ready to make 

important consumer financial choices. This is why the Bureau created the Delayed Entry 

Program (DEP) initiative. 

Source: “Future Marines in Chico, California”, Marine Recruiting Station, provided April 2017.

The DEP initiative is designed to reach recruits prior to basic training, during the “delayed 

entry” time period. This period starts when a prospective servicemember signs a military 

enlistment agreement and continues through departure for basic training. The time period can 

range from a few weeks to over a year. This is an opportune time to offer “just-enough, just-intime” education on smart consumer decision-making around money, credit transactions, and 

debt management. Training at this time can help recruits avoid the financial problems that 

routinely arise during their initial months on active duty. The Office of Servicemember Affairs 

provides a resource available to the military services designed specifically for young people 
 CHARTING OUR COURSE THROUGH THE MILITARY LIFECYCLE 15

waiting to begin their military service. Misadventures in Money Management is a virtual 

financial education learning experience that fills a critical gap in financial education for DEP 

participants. 

The program features an online graphic novel experience that incorporates character videos in 

scenario-based learning. It covers a list of timely topics such as smart consumer decisionmaking and management of money and credit/debt. The goal of the tool is to teach future 

servicemembers they can avoid common financial mistakes that can cause significant problems

with their personal finances. In addition to these main topics, there are other sections that 

provide information on choosing a bank or financial institution, understanding features of the 

Servicemembers Civil Relief Act, avoiding impulsive purchases, and understanding how 

personal management of credit can impact a military career. 

The program is currently in use by all the services, to include the Coast Guard and National 

Guard. Currently over 10,000 delayed entry personnel have utilized the program with an overall 

completion rate of over 60%. 

In 2017, the second course of the Misadventures in Money Management platform launched. 

This course has similar learning objectives customized to support the Reserve Officers’ Training 

Corps (ROTC) for the Army, Navy and Air Force.

Recruit basic training

When new recruits ship out to basic training, they are told to pack light, and to bring the clothes 

on their back, a picture ID, and a direct deposit form. Even before an enlistee meets their first 

drill sergeant, their financial decision-making process has begun, since they should have already 

selected a bank or credit union to start receiving their bi-weekly paychecks as a direct deposit. 

For many servicemembers, this might be their first experience choosing a financial institution or

product on their own. Prior to online banking and the prevalence of nation-wide institutions it 

was common for servicemembers to open, close, and re-open bank accounts on a regular basis 

due to numerous moves throughout their service. While this strategy may work for some, others 

may want to consider the benefits of consistently using one financial institution long-term. Each 

institution and each product offered by those institutions comes with different terms, costs, and 

features. The CFPB offers a Checklist for Opening a Bank or Credit Union Account
16 THE OFFICE OF SERVICEMEMBER AFFAIRS

(https://pueblo.gpo.gov/CFPBPubs/CFPBPubs.php?PubID=102 ) to assist young consumers, 

like many new recruits, in that process. 

New recruits with existing obligations may be eligible for an 

interest rate reduction under the SCRA

In addition to needing information on bank products or credit union accounts in order to make 

a proactive consumer decision, new recruits should be armed with information on the consumer 

protections available for their existing financial products and services. Often, recruits will join 

the military with prior financial obligations, like car loans, mortgages, and, in particular, student 

loans. The Servicemembers Civil Relief Act (“SCRA”) was created to provide protections for 

servicemembers in the event that transactions and judicial proceeding adversely affect the rights 

of a servicemember during their military service.10

The SCRA covers a variety of contractual obligations and, in general, includes provisions that 

may: suspend civil claims against servicemembers and protect them from default judgments 

(including certain types of repossession and foreclosure actions)11; create a cap on interest at 6% 

on debts incurred prior to an individual entering active duty military service12; among other

protections.

The DOJ has the specific authority to enforce the SCRA and accepts referrals from other federal 

agencies, including the CFPB, for possible SCRA violations. When the CFPB identifies potential 

SCRA violations in consumer complaints or during the course of its supervision work, which 

monitors for potential violations of the Federal consumer financial law defined in our statute, 

the Bureau may refer the issues to other federal law enforcement agencies, including the DOJ. 

 

10 50 U.S.C. § 3902(2)

11 50 U.S.C. § 3931

12 50 U.S.C. § 3937
 CHARTING OUR COURSE THROUGH THE MILITARY LIFECYCLE 17

For servicemembers with student loans, the SCRA protection that caps interest at an annual rate 

of six-percent for eligible pre-service financial obligations upon entry into active duty service is 

one of heightened importance.

13 Under the statute, in order to qualify for this protection, the 

servicemember must send a written request to their servicer requesting the reduction along with 

a copy of their orders calling them onto active duty.14

Over the past five years, OSA has consistently heard from servicemembers who report having 

difficulties getting their loan servicers, across various products, to apply six-percent SCRA 

interest rate. One product we have highlighted extensively since we began reviewing 

servicemember complaints is student loans.15 In October 2012, OSA released a report detailing 

the complaints servicemembers submitted about their issues receiving the rate reduction 

afforded to them under the SCRA.16 In accordance with our statutory mission to coordinate with 

other federal and state agencies, OSA shared these complaints with other federal regulators, 

including the DOJ and the FDIC. In May 2014, the DOJ joined with the FDIC and entered an 

order providing $60 million in compensation17 for more than 77,000 servicemembers in an 

 

13 50 U.S.C. 3901 et seq; The SCRA’s use of “military service” includes “active duty” as defined in 10 U.S.C. §101(d)(1).

14 50 U.S.C. § 3937(b). This request may be submitted at any time during a servicemember’s active service, and up to 

180 days after completion of active duty.

15 Under the SCRA, this protection has always applied to private student loans. The Higher Education and 

Opportunity Act of 2008 extended the protection to federal student loans.

16 http://files.consumerfinance.gov/f/201210_cfpb_servicemember-student-loan-servicing.pdf

17 In addition to the DOJ settlement with Sallie Mae/Navient, the FDIC found violations of a federal law prohibiting 

unfair and deceptive practices with regard to student loan borrowers through the servicer’s following actions: 

inadequately disclosing its payment allocation methodologies to borrowers while allocating borrowers' 

underpayments across multiple loans in a manner that maximizes late fees; and misrepresenting and inadequately 

disclosing in its billing statements how borrowers could avoid late fees. See U.S. Department of Justice, Justice 

Department Reaches $60 million settlement with Sallie Mae (May 2015), available at 

http://www.justice.gov/opa/pr/justice-department-reaches-60-million-settlement-sallie-mae-resolve-allegationscharging; See also Federal Deposit Insurance Corporation, FDIC Announces Settlement with Sallie Mae for Unfair 
18 THE OFFICE OF SERVICEMEMBER AFFAIRS

action against student loan servicers Sallie Mae and Navient (formerly one company) related to 

their application of benefits under the SCRA to active duty members of the military.18

Two months after the settlement was announced, the Department of Education (ED) issued

SCRA guidance for federal student loan servicers.19 The guidance authorized and encouraged 

federal servicers to regularly check for borrowers who are eligible for the SCRA interest rate 

reduction on the Defense Manpower Data Center (DMDC) database and proactively apply the 

protection for those eligible borrowers.

20 This newly automated process has dramatically 

increased the number of servicemembers receiving their SCRA protections, including identifying 

borrowers who had been eligible for the rate cap as far back as 2008 and retroactively applying 

it.

21

While there has been a lot of positive 

movement over the past five years, 

especially in the realm of military 

borrowers with federal student loans, the 

work is not complete. OSA revisited this 

 

and Deceptive Practices and Violations of the Servicemembers Civil Relief Act (May 2014), available at 

https://www.fdic.gov/news/news/press/2014/pr14033.html

18 In May 2014, the Department of Justice estimated that 60,000 servicemembers were harmed by illegal activity 

covered in this settlement. In 2015, the Department of Justice announced that the number of military borrowers 

receiving compensation under this settlement had increased by 30%, to nearly 78,000 borrowers. See U.S. 

Department of Justice, Nearly 78,000 Service Members to Begin Receiving $60 Million Under Department of 

Justice Settlement with Navient for Overcharging on Student Loans (May 28, 2015), available at 

http://www.justice.gov/opa/pr/nearly-78000-service-members-begin-receiving-60-million-under-departmentjustice-settlement 

19 https://ifap.ed.gov/dpcletters/GEN1416.html

20 Id.

21 According to the Government Accountability Office’s November 2016 report on the Oversight of the 

Servicemembers’ Interest Rate Cap, available at http://www.gao.gov/products/GAO-17-4

Tip: Download handouts at: 

www.consumerfinance.gov/servicemembers

or printed copies can be ordered at 

pueblo.gpo.gov/CFPBPubs/CFPBPubs.php. 

for free. 
 CHARTING OUR COURSE THROUGH THE MILITARY LIFECYCLE 19

topic in a report released in July 2015. In that report, OSA observed that SCRA protections, 

among other protections, continue to be an issue for military student loan borrowers.22 In order 

to help military consumers understand their rights, protections, and resources when it comes to 

student loan debt, OSA offers an action guide

(http://files.consumerfinance.gov/f/documents/201604_cfpb_servicemember-student-loan-guide.pdf)

for servicemembers detailing their options.23

The CFPB encourages servicemembers to shop around for 

their auto loan to avoid being targets of misleading 

advertising

Entering military service often presents a young recruit their first opportunity at financial 

stability. For many young enlistees, this is the first time they will have access to a steady stream 

of income. And for almost all recruits, no matter at what stage of life they enter, this means 

moving away from home to a new location. These circumstances are no secret to the auto 

industry; many companies, including dealerships or lenders, set up shop right outside 

installation gates and will advertise military rates or discounts to bring servicemembers into 

their business. 

As of April 1, 2017, CFPB has handled approximately 2,300 auto lending complaints submitted 

by servicemembers, veterans, and their families.24

 

22 http://files.consumerfinance.gov/f/201507_cfpb_overseas-underserved-student-loan-servicing-and-the-cost-toour-men-and-women-in-uniform.pdf

23 http://files.consumerfinance.gov/f/documents/201604_cfpb_servicemember-student-loan-guide.pdf

24 The CFPB began accepting auto lending complaints as part of the consumer loan category on March 1, 2012. Auto 

lending complaints include vehicle loan, vehicle lease, and title loan complaints. 
20 THE OFFICE OF SERVICEMEMBER AFFAIRS

FIGURE 2: TYPES OF AUTO LENDING COMPLAINTS REPORTED BY SERVICEMEMBERS

Many of these auto loan complaints report concerns with the financing costs associated with 

their auto loan, including extremely high interest rates. As one servicemember described:

“The [company] even knew how much I made as a [soldier]. I will be paying 

over [XX] when I'm done paying this car. I have a family that I need to 

support, and this is unfair and unjust. I didn't know that I was going to pay 

over [XX] what the vehicle is worth. They never explained the APR percent or 

how much I'd end up losing, and I feel really taken advantage of...This always 

happens simply because I am a [servicemember], and I live near a base, so all 

these businesses set up and sell their products advertising 'we do military 

finance.' They reel us in like fishes.”

In 2012, we heard from a father who was concerned that his son had been the victim of a 

misleading and costly car loan program right after he joined the military.25 The Bureau began an 

investigation into the issues and in June 2013, announced an order that required a return of 

approximately $6.5 million to active duty military affected by companies participating in a 

private auto loan program called the Military Installment Loans and Educational Services 

 

25 http://www.consumerfinance.gov/consumer-tools/everyone-has-a-story/harry-and-ari-struggling-with-an-autoloan/
 CHARTING OUR COURSE THROUGH THE MILITARY LIFECYCLE 21

(MILES).26 In addition to failing to properly disclose all costs associated with the loan program, 

including the costs and coverage of add-on products financed with the loans, the CFPB alleged

the MILES program required servicemembers to repay their loans using the military allotment 

system. A military allotment deducts payments for a lender directly from a military member’s 

paycheck before that salary is deposited in his or her bank account. The allotment system was 

created decades ago to help deployed servicemembers send money home to their families and 

pay creditors at a time when automatic bank payments were not yet common practices. This

enforcement action was the first time the CFPB responded to this significant vulnerability that 

allowed lenders to misuse a payment system that was created for an entirely different purpose. 

As we continued to look into the use of allotments, further CFPB enforcement actions involving 

allotments were completed and other state and federal agencies took action as well; these will be 

discussed further in the “Significant Life Event” section.

We have also heard that some lenders misrepresent a servicemember’s rights under the SCRA. 

As noted above, the SCRA interest rate protection applies only to loans entered into prior to 

entering military service. Regrettably, many new recruits have not yet had the opportunity to 

learn about their rights and protections and can be led to believe that if they sign up for a loan 

with a high interest rate while on active duty that the SCRA would drop the rate to six-percent 

later on. This is not true. 

In order to help all consumers shopping for a new or used car, the CFPB created the Know 

Before You Owe Auto Loan Worksheet

(http://files.consumerfinance.gov/f/documents/201606_cfpb_auto-loan-worksheet.pdf ). The 

worksheet helps consumers shop for financing and understand the total cost of the loans being 

offered. An associated OSA blog (https://www.consumerfinance.gov/about-us/blog/arm-

 

26 http://www.consumerfinance.gov/about-us/newsroom/cfpb-orders-auto-lenders-to-refund-approximately-6-5-

million-to-servicemembers/
22 THE OFFICE OF SERVICEMEMBER AFFAIRS

yourself-knowledge-when-shopping-auto-loan/) offers tips directed at servicemembers, such as

being alert to the mischaracterization of SCRA protections.

First permanent duty station

Serving in the military involves unique challenges not found in other professions, not the least of 

which is the military’s ability to determine when and where a servicemember moves. Receiving 

orders to move to a servicemember’s first duty station can be an exciting, yet stressful time. 

After basic training and occupational training locations, embarking on a more permanent 

location for the near future can bring out a desire to set down roots – especially for 

servicemembers with spouses and children waiting to join them. This desire, coupled with the 

need to provide housing for their families, can result in shopping for a home and a home loan at 

their new location. 

As of April 1, 2017, the CFPB handled approximately 13,700 mortgage complaints submitted by 

servicemembers, veterans, and their families. Of those complaints, about 2,800 were related to 

mortgage origination issues.27

It is important for servicemembers to understand their options 

when choosing a home loan

In January 2015, the Bureau first launched its “Owning a Home” online interactive suite of tools

(http://www.consumerfinance.gov/owning-a-home/) to help consumers navigate the mortgage 

process and learn about the various terms and features associated with different mortgages. In 

September of 2015, the Bureau added additional features to the site to help consumers think 

 

27 The CFPB began accepting mortgage complaints on December 1, 2011. 
 CHARTING OUR COURSE THROUGH THE MILITARY LIFECYCLE 23

through the factors about choosing homeownership, understand what they need to do to get a 

mortgage, shop for the best offer, and understand the closing process.

The Owning a Home tool is an effective way for servicemembers to sort through their potential 

loan options, including learning the differences between conventional loan options and 

government-backed loan options like the VA home loan guarantee. Once on active duty for a 

minimum of 90 continuous days, a servicemember becomes eligible for a VA-guaranteed home 

loan.28 A VA-guaranteed home loan offers many potential benefits for eligible borrowers 

including a low down payment and no requirement for mortgage insurance. However, 

sometimes these benefits may be coupled with higher interest rates and additional funding fees. 

That is why it is important that servicemembers and veterans learn about their various loan 

options and shop around for the best deal that works for them. 

Some financial institutions have even tried to capitalize on business from VA-eligible borrowers

– using advertising techniques that mislead consumers to think the products they are selling are 

endorsed or even being directly offered by the VA. In April 2015, the Bureau took action against 

RMK Financial Corporation for wrongly using the logos of the Department of Veterans Affairs 

and the Federal Housing Administration (FHA) in their advertisements. The CFPB alleged these 

ads also misrepresented the price of the advertised mortgages, including whether the interest 

rate being offered was fixed or variable. 

At the time of these actions, the Director of the VA Home Loan Program stated:

“VA will never email or mail out solicitations for our loan program. VA does 

not endorse or sponsor any particular lender; instead, we work to ensure all 

Veterans and Servicemembers can safely use the benefit they’ve earned, at the 

 

28 For all eligibility requirements, refer to http://www.benefits.va.gov/homeloans/purchaseco_eligibility.asp
24 THE OFFICE OF SERVICEMEMBER AFFAIRS

lender of their choice. If you have any questions about your home loan benefit, 

please visit the VA website, or call VA at (877) 827-3702.”29

OSA continues to monitor complaints for misleading mortgage advertisements and regularly 

refers such complaints to the Bureau’s Enforcement team for review.

In November 2016, we highlighted the issue of aggressive advertising for VA home loan 

refinances with the release of our semi-annual complaint snapshot.30 In the report, we 

recognized that VA refinances can be considerably quicker and easier than other types of 

refinances because they do not require an appraisal or conventional underwriting. Because of 

this, many servicemembers reported their frustrations to us concerning aggressive solicitations

and misleading advertisements from lenders trying to get their business. 

Allotment rules tightened for personal property in order to 

protect from abuse by businesses

Arriving at a servicemember’s first duty station generates a number of expenses, as new 

consumer purchases are generally required. Whether a servicemember chooses to live on the 

installation, rent off-installation housing, or purchase a new home, furniture and other types of 

consumer goods are a necessary first step to creating a home. For many years, some businesses 

that sold consumer goods like couches and TVs, requested that, and sometimes required, 

servicemembers pay by military allotment. As mentioned above in the MILES case, some 

businesses have used this payment system as a quick and secure way to get paid. In late 2014, 

the Department of Defense announced changes to the allotment system, which prohibits new 

 

29 Quote provided by then Director of the VA Home Loan Program, Mike Frueh. Quote can be found in CFPB Blog 

“The VA doesn’t send you mortgage ads”, by Holly Petraeus, at http://www.consumerfinance.gov/about-us/blog/theva-doesnt-send-you-mortgage-ads/

30 http://files.consumerfinance.gov/f/documents/112016_cfpb_OSA_VA_refinance_snapshot.pdf
 CHARTING OUR COURSE THROUGH THE MILITARY LIFECYCLE 25

allotments to purchase, lease, or rent personal property.31 Around the same time, the Bureau 

took action against Freedom Stores, Inc. the CFPB alleged double dipping into servicemembers’ 

funds who had sent their payments via military allotment. After relying on reports from a 

payment processor that were sometimes incorrect, the CFPB alleged, Freedom Stores, Inc. took 

a second payment from the bank account that the consumer had authorized as a backup 

payment method. 

After the DoD announced the prohibition on allotments for consumer goods, OSA continued to 

monitor the complaints and speak to the military community about this issue. During the first 

half of 2015, we observed that many companies were still advertising repayment options for 

personal property via military allotment. In June 2015, the Bureau sent letters to several of 

these companies advising them to review their advertising and other practices related to this 

type of payment. The Bureau expressed concern that if these companies are still advertising 

repayment by allotment, they may be violating federal consumer protection laws. 

Significant life events

As with all consumers, significant life events such as marriage and children have unavoidable 

impacts on financial circumstances and financial decision-making. For military consumers, 

there are unique financial circumstances that arise during these events.

 

31 Personal property includes vehicles, appliances and consumer electronics, as well. Allotments made for the 

purpose of savings, insurance premiums, mortgage or rent payments, support for dependents, or investments will not 

be affected. The changes do not apply to military retirees or Department of Defense civilian employees. More 

information available at, https://www.defense.gov/News/News-Releases/News-Release-View/Article/605286
26 THE OFFICE OF SERVICEMEMBER AFFAIRS

It is common practice for servicemembers to seek and obtain 

Powers of Attorney for their military spouse

Due to the nature of the military lifestyle and the potential for long periods away from home, 

military spouses often make financial decisions for the servicemember and the household as a 

whole. Because of this, it is common for servicemembers to seek and obtain Powers of Attorney 

(POA) for their spouses through their military Legal Assistance Office.

In 2015, we wrote about military families 

struggling with their financial providers to 

gain access to their spouse’s and 

household accounts even when they have 

a valid General POA. We found that 

companies may require a more targeted 

POA for added consumer protection; 

however, based on the complaint submissions we received, it appeared that this added 

requirement was not being relayed to the military families at the appropriate time. Confusion 

about companies’ POA requirements led to an exacerbation in fees and overall financial stress 

for many servicemembers and their families.

“The financial institution is blocking my access to the joint account I own with 

my Army active duty wife, currently deployed to Kuwait...In short, they are 

blocking access to our money and I can't even pay our bills...They claim that, 

despite already having both a General Power of Attorney and a Special Power 

of Attorney filed on my behalf prior to my wife's deployment (Army SOP), 

these comprehensive documents are insufficient and they are demanding a 

THIRD document "authorizing" my access electronically.”

The Military Lending Act helps servicemembers and their 

covered dependents avoid debt traps that would leave them 

distracted from their mission

As noted above, one significant event in a servicemember’s life may be getting married and/or 

having a child. Both events obviously have important emotional and personal ramifications –

they also trigger additional protections under the Military Lending Act (MLA), as both spouses 

and children qualify as “dependents.” In 2013, Congress enacted many changes to the Military 

Tip: Considerable thought should always be 

given when granting anyone power of 

attorney – the attorney-in-fact may end up 

using the account(s) for reasons not 

specified by the grantor.
 CHARTING OUR COURSE THROUGH THE MILITARY LIFECYCLE 27

Lending Act, generally broadening its scope and applicability. One significant extension of 

protection was to raise the age at which a servicemember’s child continues to be considered a 

covered borrower.32 The MLA is important even beyond who it protects – it is important with 

regard to how it protects them.

Senior military leaders have recognized the impact high-cost credit and resulting debt can have 

on their servicemembers. In fact, the problem became so acute in the early 2000s, that they 

approached Congress and described the problem, describing how the stress of these loans 

affected readiness and extreme cases made the servicemember unavailable for further service.33 

Congress listened to these concerns and launched a study in 2005 to determine the magnitude 

of the problem. The report found that “predatory lending undermines military readiness, harms 

the morale of troops and their families, and adds to the cost of fielding an all-volunteer fighting 

force. Education, counseling, assistance from Aid Societies, and sound alternatives are necessary 

but not sufficient to protect Service members from predatory lending practices or products that 

are aggressively marketed to consumers in general and to military personnel directly.”34 The 

DoD identified the link between financial readiness and mission readiness, surveying the 

problem of financial stress and found servicemembers rate finances as more of a source of stress 

than even deployments or personal relationships, among other stressors.35

In 2006, Congress enacted the MLA statute which protects servicemembers, and their covered 

dependents, from being charged more than a 36% Military Annual Percentage rate (MAPR) on 

 

32 10 U.S.C. 987(i)(2).

33 “Predatory Lending and the Military: The Law and Geography of ‘Payday’ Loans in Military Towns.” By Professor 

Steven M. Graves, California State University, Northridge and Professor Christopher L. Peterson, University of 

Florida and published in the Ohio State Law Journal, Volume 66, Number 4, 2005 Page 4-5

34 Report on Predatory Lending Practices Directed at Members of the Armed Forces and their Dependents. 

http://archive.defense.gov/pubs/pdfs/Report_to_Congress_final.pdf

35 72 FR 50580, 43564 (Aug. 31, 2007)
28 THE OFFICE OF SERVICEMEMBER AFFAIRS

the extension of consumer credit. The statute directed the DoD create the rule to further define 

what the extension of “consumer credit” means.36 In a 2007 rule, DoD defined consumer credit 

to narrowly cover three credit product types: payday loans, vehicle title loans, and tax refund 

anticipation loans. The definition of these three covered products were then further narrowed 

by certain attributes like length of time and amount. For example, to be covered, a payday loan 

needed to be for $2000 or less or the repayment period of a vehicle title loan needed to be 181 

days or less. Unfortunately, these narrow definitions did not completely alleviate the problems 

associated with high-cost credit because many predatory products continued to exist. As CFPB 

Director Richard Cordray stated in December 2014: “The current rules under the Military 

Lending Act are akin to sending a soldier into battle with a flak jacket but no helmet. To give our 

troops full-cover protection, the rules need to be expanded.” “The Department of Defense’s 

proposed revisions will go a long way toward better shielding our military from high-cost credit 

products.”37

After a 2012 Congressionally-mandated study on the effectiveness of the 2007 DoD rule as part 

of the 2013 amendments to the MLA referenced above Congress amended the MLA to add a 

requirement that DoD review its MLA rule at least once every two years in consultation with 

certain federal agencies, including the Bureau.

38 In July 2015, DoD released an update to the 

rule that significantly broadened the definition of consumer credit – now aligning it more 

closely with the definition of consumer credit under the Truth in Lending Act (TILA). The 

definition now covers many more credit products (regardless of length of time and amount). 

Key exceptions include certain secured financing transactions like residential mortgages.39 With 

 

36 10 U.S.C. 987 (h)

37 CFPB Press Release, December 29, 2014. http://www.consumerfinance.gov/about-us/newsroom/cfpb-reportfinds-loopholes-in-military-lending-act-rules-rack-up-costs-for-servicemembers/ 

38 10 U.S.C. 987(h)(3).

39 32 CFR 232.
 CHARTING OUR COURSE THROUGH THE MILITARY LIFECYCLE 29

the exception of credit cards, for which creditors must comply with the rule by October 3, 2017, 

the newly covered credit products are now subject to the 36% MAPR cap, as well as the 

prohibitions against mandatory: arbitration, allotments, and waivers of consumer protection 

laws, among other protections.40 

In November 2015, OSA issued a complaint snapshot detailing the impact that high-cost 

consumer credit has on our men and women in uniform. The snapshot also highlighted the new 

protections that would be available under the updated MLA rule upon the effective date.41 The 

CFPB also offers targeted, plain language questions and answers about the MLA through Ask 

CFPB (https://www.consumerfinance.gov/askcfpb/1783/what-are-my-rights-under-militarylending-act.html).

OSA remains committed to supporting the Bureau’s enforcement and supervisory 

responsibilities with respect to the MLA. Through the Federal Financial Institutions 

Examination Council, Bureau staff worked with the prudential regulators to issue updated MLA 

examination procedures. The Bureau regularly works with our colleagues at DoD, and other 

agencies with MLA responsibilities, to provide guidance intended to ensure that industry 

compliance is effectively achieved. Going forward, we will provide technical assistance at DoD’s 

request and continue to consult with DoD on the implementing regulation. 

 

40 For purposes of calculating the MAPR the 36% includes, with some exceptions, cost associated with the extension 

of credit such as: finance charges, credit insurance or premiums, add-on products sold in connection with the credit 

transaction application fees and participation fees. In addition to limiting the MAPR to 36%, the MLA provides 

additional protections like prohibiting the mandatory waiver of other consumer protections laws (like waiving certain 

SCRA rights), prohibiting the requirement to pay only by allotment, and prohibiting prepayment penalties.

41 https://s3.amazonaws.com/files.consumerfinance.gov/f/201511_cfpb_snapshot-of-servicemembercomplaints.pdf
30 THE OFFICE OF SERVICEMEMBER AFFAIRS

Subsequent Permanent Change of Station

(PCS) moves

Relocating every two to three years can have a significant impact on financial health. Monetary 

needs arise from the fundamental necessities – moving expenses, buying new furniture, setting 

up utilities to the potentially unsuspecting challenges – loss in family income, storage costs, 

service cancellation fees, etc. These frequent moves not only require constant financial diligence, 

but also, a lot of financial flexibility that may not always be possible. The CFPB consistently 

hears from servicemembers and their families about how many of their financial struggles 

stemmed from relocating due to military orders. Sometimes it’s as simple as never receiving a 

final notice/bill that then results in negative credit reporting or as complicated as an underwater 

mortgage on a home which they are unable to 

sell. 

The financial hurdles associated with PCS 

moves have long been acknowledged and over 

time specific protections have been put into 

place in order to assist military families 

during these times. In addition to the 

military’s basic relocation expense coverage, 

the SCRA allows for certain financial protections in conjunction with the receipt of PCS orders, 

including but not limited to, the ability to cancel certain leases without penalty.42

While these protections do a lot to assist in overcoming the financial hurdles, they are not all 

encompassing. They may also be difficult to navigate or people may not know about them. Below 

is a breakdown of different consumer financial products or services that may be impacted during 

a PCS move.

 

42 50 U.S.C. § 3955

Tip: Under 10 U.S.C. §1056, each service is 

required to provide relocation assistance 

programs and www.militaryonesource.mil is 

a great resource to learn more about those 

programs and the relocation support offices 

located at each installation. 
 CHARTING OUR COURSE THROUGH THE MILITARY LIFECYCLE 31

After receiving PCS orders, servicemembers struggle to 

receive help for their underwater home

For many homeowners, the financial crisis of 2008 left their home values significantly below the 

amount they owed on their mortgage note. This put consumers in a precarious position- unable 

to sell but potentially unable to afford a monthly payment on an upside down investment. For 

the average consumer, the solution to the “underwater” home is to wait out the market; 

potentially modify the loan to a more affordable monthly payment and consider selling once the 

fair market value is back above the mortgage debt. For members of the military with mandatory 

PCS orders, this solution is not always possible. 

Since the Bureau began accepting mortgage complaints in December 2011, military families 

report about their struggles with home ownership after receiving PCS orders. It was clear from 

the mortgage complaints submitted that military consumers were frustrated with the lack of loss 

mitigation options available to them since their PCS move did not fit within the standard 

definition of “qualifying hardship” at the time.43

 

43 In 2009, the federal government, via Treasury, initiated loss mitigation options for struggling homeowners- the 

“Making Home Affordable” programs (including HAMP, HARP, and HAFA). Very generally speaking, HAMP was

intended to assist homeowners struggling to make a mortgage payment who were suffering from what was considered 

a “financial hardship.” 
32 THE OFFICE OF SERVICEMEMBER AFFAIRS

FIGURE 3: TYPES OF MORTGAGE COMPLAINTS REPORTED BY SERVICEMEMBERS OVER TIME

As a result of this unique situation, in June 2012, the Bureau joined with the prudential 

regulators to issue the Interagency Guidance on Mortgage Servicing Practices Concerning 

Military Homeowner with Permanent Change of Station Orders. The guidance not only reminds 

servicers of the need to provide important information in a timely manner, but also makes it 

clear that military homeowners with PCS orders should get accurate and clear information from 

their mortgage servicers early enough to make informed decisions that will minimize damage to 

their financial readiness.

44 Around the same time, FHFA announced a short sale assistance

 

44 http://files.consumerfinance.gov/f/201206_cfpb_PCS_Orders_Guidance.pdf, other agencies included: Board of 

Governors of the Federal Reserve System, Federal Deposit Insurance Corporation, National Credit Union 

Administration, Office of the Comptroller of the Currency
 CHARTING OUR COURSE THROUGH THE MILITARY LIFECYCLE 33

program for military borrowers. This 

program gives borrowers with PCS 

orders, who are current on their loan, 

the ability to short sell their home 

while forgiving the deficiency 

amount.45

Going forward as Fannie Mae; Freddie Mac; and other government-sponsored and private 

servicers develop their own loss mitigation programs since the sunset of HAMP, OSA will 

continue to advocate for recognition of the struggles servicemembers face with homeownership 

when faced with PCS orders. 

Contract restrictions may prevent servicemembers from 

taking their car overseas

In most circumstances, it is easy for a servicemember to bring their car to their new duty station 

around the United States (US). However, when receiving orders to move outside the continental 

US, the situation may become much more difficult. In our 2016 Annual Report, we highlighted 

the issue of loan contract terms that restrict a servicemember from taking their car out of the 

country.46 After reviewing the complaints submitted about this issue, we found that 

servicemembers are often unaware of the restriction at the time they sign their loan contract and 

do not discover it until they contact their lender to get shipping authorization:

“Even if such a clause exists in their financing agreement prohibiting 

transporting vehicles outside the country...I would have never financed with 

 

45 http://www.fhfa.gov/Media/PublicAffairs/Pages/FHFA-Announces-Short-Sale-Assistance-for-MilitaryHomeowners-with-Fannie-Mae-or-Freddie-Mac-Loans.aspx

46 http://files.consumerfinance.gov/f/201603_cfpb_snapshot-of-complaints-received-from-servicemembersveterans-and-their-families.pdf

Tip: Even if a lender forgives the mortgage 

deficiency, they still may be required to 

report the canceled debt to the IRS. Consult 

a tax professional for more information after 

receiving a 1099-C.
34 THE OFFICE OF SERVICEMEMBER AFFAIRS

[company] had I known they would deny me the ability to take my vehicle 

with me to an [overseas] duty station.”

Servicemembers need to be diligent when executing long-term contracts and check for terms 

and conditions that may impact military life, such as moving overseas. 

The provision allowing auto lease cancellation under the 

SCRA is NARROWER than some servicemembers realize

We also have heard from servicemembers who report issues receiving the protections under the 

SCRA that allow them to cancel their auto lease after receiving PCS orders.48 Over the years, we 

have seen that the issues with this provision of the SCRA, while sometimes due to poor 

execution by the loan servicers, often can be the 

result of servicemember confusion about its 

applicability moving from one state to another, 

inside the continental US.

An automobile lease operates differently than an 

automobile loan. With an automobile lease, the 

leasing company effectively purchases the car on 

behalf of the consumer and then allows the 

consumer to use the vehicle in return for 

monthly rental payments. The lease lasts for a specified term and ending the term early often 

comes with large penalties. 

 

47 50 U.S.C. §3955(b)(2)(B)

48 50 U.S.C. §3955

Tip: For lease cancellation (auto and 

apartment), the lease contract can be 

entered into prior to military service or while 

on active duty. This is an important 

distinction since many SCRA protections do 

not apply to contracts executed during active 

duty service.47
 CHARTING OUR COURSE THROUGH THE MILITARY LIFECYCLE 35

The SCRA creates protections that allow servicemembers to cancel their automobile lease, 

without financial penalty, if certain conditions are met. If an active duty servicemember 

executes an automobile lease,49 and during the course of the lease contract receives PCS orders 

to move outside of the continental United States (OCONUS)50 the lease may be terminated. The 

lease may also be terminated if the servicemember is already stationed outside the continental 

US and moving to another place outside the continental US or back inside the continental US 

(CONUS).51

Many servicemembers attempt to terminate their auto lease under the SCRA when moving from 

state to state within the continental US, and are frustrated when the lease holder rejects their 

request. In response to that confusion, the Bureau created a specific Ask CFPB question 

(http://www.consumerfinance.gov/askcfpb/889/i-am-military-and-i-have-been-ordered-moveoverseas-or-deploy-can-i-get-out-my-car-lease-without-paying-penalty.html) and answer to 

educate about the scope and limits of this protection.

52

 

49 For auto lease cancellation, the lease contract can be entered into prior to military service (and then be called onto 

Active Duty for at least 180 days) or while on active duty. This is an important distinction since many SCRA 

protections do not apply to contracts executed during active duty service, 50 U.S.C. §3955(b)(2)(B).

50 See http://www.defensetravel.dod.mil/site/travelreg.cfm. The non-foreign OCONUS area as defined by the Joint 

Federal Travel Regulation, Chapter 5, Part A, Section 6: The states of Alaska and Hawaii, the Commonwealths of 

Puerto Rico and the Northern Mariana Islands, and any U.S. possession.

51 50 U.S.C. §3955(c)(1) requires that the termination must be executed by: providing notice in writing, a copy of the 

orders, and returning the vehicle within 15 days of providing written notice. Under 50 U.S.C. §3955(c)(2), delivery of 

written notice may be accomplished by hand delivery, private business carrier, or by mail (with return receipt 

requested).

52 http://www.consumerfinance.gov/askcfpb/889/i-am-military-and-i-have-been-ordered-move-overseas-ordeploy-can-i-get-out-my-car-lease-without-paying-penalty.html
36 THE OFFICE OF SERVICEMEMBER AFFAIRS

Deployment/post deployment transition

Since 2011, more than 2.4 million servicemembers have deployed in support of combat 

operations all over the globe. In addition to the personal and emotional ramifications 

deployment has on servicemembers and their families, there are distinct financial situations that 

arise as well.

An Active Duty Alert may help protect a servicemember’s 

credit file while they are away from home

Deploying overseas and being mission-focused may mean a distraction from credit accounts and 

keeping up with credit reports. Often, a servicemember has already had numerous address 

changes at the time of deployment and while they are away, mail can be delivered to their 

current residence but also old locations – including mailings like credit offers. These situations 

put servicemembers at an increased risk for fraud or identity theft. 

As of April 1, 2017, the CFPB has handled approximately 1,500 servicemember complaints 

related to credit reporting from self-reported active duty servicemembers, of which, about 200 

complaints were related to “credit monitoring or identity protection” or “improper use of credit 

report.”53 Out of these complaints, some servicemembers reported initiating an Active Duty 

Alert prior to leaving for active duty.

The Fair Credit Reporting Act (FCRA) provides three types of alerts to protect credit files from 

potential fraud or identity theft – one being the Active Duty Alert. An Active Duty alert on a 

credit file notifies companies of the consumer’s military status and ensures that they have 

reasonable policies and procedures to verify the identity of a person who is requesting new 

credit in that name. The alert will also generally prohibit credit reporting companies from 

providing the servicemember’s name for new prescreened credit offers for two years.

 

53 The CFPB began accepting credit reporting complaints on October 22, 2012.
 CHARTING OUR COURSE THROUGH THE MILITARY LIFECYCLE 37

After reviewing complaints from servicemembers who believe they were victims of fraud or 

identity theft while they were stationed away from home, we recognized the need for additional 

education and awareness of the Active Duty Alert provided by the FCRA. In August 2015, we 

created the Fraud Alert Fact Sheet (http://files.consumerfinance.gov/f/201508_cfpb_fraudprotection-tools-to-help-safeguard-servicemembers.pdf) to provide education about this alert 

and the other fraud alerts available for credit files.

While deployed, servicemembers may struggle with

communicating with their financial institution if there is a 

problem

The 2015 OSA Annual Report spotlighted the issue of fees associated with the use of financial 

products and the fact that certain aspects of the military lifestyle make some of those fees 

difficult to avoid. The report highlighted that complaints raised concerns about financial 

institutions’ lack of tailored communication procedures and protections for military families, 

especially for servicemembers deployed overseas. For example, a servicemember who only had 

regular access to email and other online systems during his deployment could not effectively use 

the company’s email and live-chat feature to speak with representatives with authority to resolve 

his issue. He expressed his distress: 

“My inquiry remains unresolved and may soon unnecessarily cost me 

upwards of $500 in fees. The company's underlying policies that serve to block 

account holder communications with empowered employees poses the 

likelihood of injuring customers throughout the U.S.--especially harming 

service members deployed overseas.”
38 THE OFFICE OF SERVICEMEMBER AFFAIRS

The SCRA may help prevent servicemembers from losing 

their cars or homes while they are deployed

As we noted above in the section on Recruit Basic Training, the SCRA provides an array of 

protections for servicemembers in the event that transactions and judicial proceeding adversely 

affect the rights of a servicemember during their military service.54 One of these protections

includes requirements that creditors must meet when they seek to repossess the property of a 

servicemember, or foreclose upon their home.55 This protection becomes of particular 

importance when servicemembers are deployed overseas and have an increased need to be 

mission-focused.

In particular, the statute provides specific protections for certain situations which require a 

court order and/or stay before a servicemember’s property can be repossessed or foreclosed 

upon. We hear from servicemembers who have concerns with regard to their foreclosure or 

repossession protection rights under the SCRA. In this area, we work closely with our federal 

partners at the DOJ, who enforce the SCRA, to share those servicermember concerns and 

potential violations. 

Serving away from home only to return to find that your property has disappeared after a lienholding creditor has repossessed it, or your home was foreclosed upon, is unsettling to say the 

least. The Department of Justice has been active in litigating cases in both areas- protecting 

servicemembers from unlawful repossession as well as unlawful foreclosures. It has litigated

cases where the servicemember’s cars have been repossessed without a court order. In the last 

five years, the DOJ has litigated five cases in this area.

56 They have been similarly active with 

cases involving unlawful foreclosures- notably including SCRA practices as an area of focus 

 

54 50 U.S.C. § 3902(2)

55 50 U.S.C. § 3952

56 https://www.justice.gov/servicemembers/servicemembers-civil-relief-act-scra
 CHARTING OUR COURSE THROUGH THE MILITARY LIFECYCLE 39

within the National Mortgage Settlement, returning approximately $311 million to 

servicemembers who suffered an unlawful foreclosure.57 

As the DOJ focuses on SCRA enforcement, the CFPB provides consumer education about the 

SCRA. Ask CFPB offers answers to questions that address a servicemember’s rights under the 

SCRA with regard to auto repossession and property foreclosures. 

While serving in an area of hostile fire, servicemembers may 

be able to reduce their student loan interest rate to 0%

As of April 1, 2017, the CFPB handled approximately 900 servicemember complaints related to 

federal student loan servicing.58 Active duty servicemembers have the ability to reduce their 

interest on federal student Direct Loans (disbursed on or after October 1, 2008) to zero-percent 

while serving in an area of hostile fire.59 This benefit can be applied retroactively, if the 

servicemember chooses to apply for it once they return home from deployment.

Through OSA’s review of the federal student loan complaints, it was clear this is a lesser-known 

benefit within the military community. OSA offers the use of our Student Loan Action Guide

(https://www.consumerfinance.gov/f/documents/201604_cfpb_servicemember-student-loanguide.pdf) to intermediaries such as the Judge Advocate General (JAG) officers at military 

installations, in order to help disseminate the message about this important protection. 

 

57 https://www.justice.gov/opa/pr/service-members-compensation-unlawful-foreclosures-under-servicememberscivil-relief-act

58 The CFPB began accepting federal student loan servicing complaints on February 25, 2016. 

59 20 U.S.C. 1087e(o)
40 THE OFFICE OF SERVICEMEMBER AFFAIRS

Being called to mobilize may trigger protections under the 

SCRA for National Guard members and reservists

In 2003, Congress enacted P.L. 108-189, the Servicemembers Civil Relief Act (as described 

above), a restatement and modernization of the rights available to servicemembers under the 

Soldiers’ and Sailors’ Civil Relief Act (SSCRA). According to a Congressional Research Service 

report, among others, one purpose of this updated law was to respond to the increased 

utilization of Reserve and National Guard military units in the Global War on Terrorism – two 

units that generally were not previously covered under the SSCRA.60 The benefits period under 

the SCRA is the period of time between the date a Reservist receives their induction or activation 

orders and the date the active duty ends.61 These benefits can be significant to mobilized 

Reservists and National Guard members due to the fact that many of their major financial 

obligations will have been entered into while they are not on active duty and based on income

that was being earned in their civilian profession.

Many of the complaints we receive from Reservists and National Guard members are related to 

issues invoking their 6% interest protections under the SCRA. Companies appear to have 

difficulty understanding these types of military orders and this can pose a barrier to 

appropriately applying the coverage required by the Act. 

 

60 Congressional Research Service. The Servicemembers Civil Relief Act (SCRA): An Explanation (RL34575 ; August 

27,2014), by R. Chuck Mason, at 1.

61 50 U.S.C. § 3917(b)
 CHARTING OUR COURSE THROUGH THE MILITARY LIFECYCLE 41

Reenlistment/Promotion

In general, a newly enlisted servicemember or commissioned officer can expect their initial 

commitment to last around 2-4 years.62 These periods vary among the branches of service and 

among the different military specialties or careers. Many servicemembers join without having a 

sense of how long they would like to remain in the service. The decision to re-enlist or remain in 

service to seek promotion to the next higher rank involves both personal and financial factors. 

The decision to continue one’s enlistment or seek a promotion does not rest solely with the 

servicemember; commanders and the needs of the military itself ultimately dictate the length of 

a servicemember’s career. One significant factor that may affect a servicemember’s ultimate 

career success is their financial health, and one marker of financial health that the military uses 

is credit reports, including the presence of negative information and excessive debt.

Debts and negative credit reporting can be a military career 

killer

In general, a consumer’s credit report operates as the basis for many financial lenders and 

service providers’ decisions to engage in business with an applicant. However, for members of 

the military their credit report also serves an essential function in their career growth. Financial 

hardship can lead to distraction from readiness and ultimately separation if the issues cannot be

resolved. This is not only a costly, personal burden for our men and women in uniform but also 

the Department of Defense. At a 2017 hearing of the Personnel Subcommittee of the Senate 

Armed Services Committee about military readiness, Senator Jack Reed commented,

 

62 Enlistment contracts vary in lengths of service, but in order to qualify for various benefits under the National Call 

to Service Program, individuals must complete entry training and serve on active duty for at least 15 months. These 

individuals must then serve either an additional period of active duty as determined by the Secretary of Defense, or a 

period of 24 months in an active status in the Selected Reserve. More information available at: 

http://www.benefits.va.gov/gibill/national_call_to_service.asp
42 THE OFFICE OF SERVICEMEMBER AFFAIRS

“According to DoD, every time we separate a servicemember, it costs the 

Department $57,000,” he continued, “The Department estimates that each 

year, somewhere between 4,700 and 8,000 servicemembers are involuntarily 

separated due to financial hardship. That’s a staggering amount of money and 

it’s totally avoidable I think.”63

Debt collection is the largest complaint category among servicemembers, veterans and their 

dependents. As of April 1 2017, the CFPB handled approximately 31,500 debt collection 

complaints from military consumers, which is 42% percent of the entire servicemember 

complaint population compared to debt collection complaints from the entire consumer 

population totaling 27% of the entire consumer complaint population.

64

A common theme among credit reporting and debt collection complaints from servicemembers 

and their families is the concern that debt collection efforts resulting in negative credit reporting 

will put their security clearance review at risk. This unique factor to a servicemember’s 

employment status is often used by debt collectors as a threat to obtain payment – sometimes 

on debts that were previously paid or never actually owed. 

It is true that negative information on a credit report may cause a security clearance to be pulled 

when it is up for review. However, debt collectors and creditors do not have the authority to 

disclose to commanders that you have a debt in collection without your consent, or, in any way, 

directly influence the decision about a servicemember’s clearance. More information about this 

issue can be found in this blog (http://www.consumerfinance.gov/about-us/blog/are-unpaiddebts-a-military-career-killer/). 

 

63 http://www.armed-services.senate.gov/hearings/17-02-14-department-of-defense-single-servicemember-andmilitary-family-readiness-programs

64 The CFPB began accepting debt collection complaints on July 10, 2013. 
 CHARTING OUR COURSE THROUGH THE MILITARY LIFECYCLE 43

The Bureau has also vigorously monitored and enforced against these debt collection behaviors 

from financial institutions. In October 2015, the Bureau ordered Security National Automotive 

Acceptance Company (SNAAC), an auto lender that specializes in loans to servicemembers, to 

pay $3.28 million for illegal debt collection tactics, including exaggerating potential disciplinary 

action under the Uniform Code of Military Justice for failure to pay. 65 Acting on a tip from a

servicemember’s father, the Bureau later discovered that SNAAC had violated the 2015 order by 

failing to provide more than $1 million in refunds and credits, affecting more than 1,000 

consumers. In April 2017, the Bureau ordered SNAAC to pay that redress through the CFPB, 

plus an additional $1.25 million penalty.66

Additionally, in October 2016, the CFPB ordered Navy Federal Credit Union to pay $28.5 

million for improper debt collection actions. These actions included making false litigation 

threats as well as false threats to contact commanding officers to pressure an active duty 

servicemember to repay debts.67

OSA offers an educational handout (https://www.consumerfinance.gov/f/CFPBServicemembers-Know-Your-Rights-Handout-Debt-Collection.pdf ) about servicemember

rights when dealing with debt collectors.

 

65 SNAAC was also found to have threatened to contact commanding officers and falsely threatened to garnish wages. 

More information about this action can be found at, http://www.consumerfinance.gov/about-us/newsroom/cfpborders-servicemember-auto-loan-company-to-pay-3-28-million-for-illegal-debt-collection-tactics/

66 More information can be found at, https://www.consumerfinance.gov/about-us/newsroom/cfpb-issues-125-

million-fine-servicemember-auto-lender-violating-consent-order/

67 In addition to making false threats about debt collection to their members, it was also found that Navy Federal 

Credit Union unfairly restricted account access when members had a delinquent loan and misrepresented credit 

consequences of falling behind on a loan. More information about this action can be found at, 

http://www.consumerfinance.gov/about-us/newsroom/cfpb-orders-navy-federal-credit-union-pay-285-millionimproper-debt-collectionactions/?utm_source=newsletter&utm_campaign=osa&utm_medium=email&utm_term=10122016_h1
44 THE OFFICE OF SERVICEMEMBER AFFAIRS

Repaying student debt will help servicemembers stay on 

track as they progress through their military career

As a servicemember progresses through their military career, the presence of debt can become 

an important factor affecting their career success. Eliminating debt may simply be a personal 

goal a servicemember pursues as they progress through their professional life. Servicemembers 

who already have some college under their belt and possibly some student loan debt can use the 

CFPB’s Paying for College tools, like “Repay Student Debt” to learn about repayment options 

that may lower their monthly payment or provide short-term relief if they are facing financial 

difficulties. Borrowers in default can learn about options that might hold the key to repairing 

their credit, borrowing to go back to school, or bringing their loans back into good standing. 
 CHARTING OUR COURSE THROUGH THE MILITARY LIFECYCLE 45

For example, most enlisted servicemembers likely qualify for a federal student loan payment 

between $0-$100/month under an income driven repayment plan. 68 These same 

servicemembers earn credit toward toward Public Service Loan Forgiveness each month when 

they make income-driven payments (more information about this to follow). In just a few 

questions, the CFPB “Repay Student Debt” tool can help servicemembers figure out if they 

qualify for these benefits.

The Repay Student Debt tool features sample instructions that student loan borrowers can send 

to their student loan servicers when seeking an affordable payment on a private student loan, 

requesting that a cosigner be released from a loan obligation, or directing a student loan servicer 

to apply a prepayment in a manner that is in the borrower’s best interest. 

Reenlisting for longer service may trigger opportunities such 

as public service loan forgiveness

The decision to reenlist may also trigger new opportunities to help manage federal student loan 

debt, including Public Service Loan Forgiveness (PSLF). PSLF allows for active duty 

servicemembers (and veterans working in other public service positions)69, after meeting certain 

requirements, to have the balance of certain types of federal student loans forgiven after 

working in public service for ten years and making 120 on-time qualifying payments.70

 

68 A single, E-4 with more than 4 years of service will earn around $30,000/year. Assuming the enlisted 

servicemembers have no other income, their military pay would qualify them for a federal student loan payment of 

$95/month under “Paye As You Earn (PAYE)” repayment plan. See military pay charts for January, 2017 

https://www.dfas.mil/militarymembers/payentitlements/military-pay-charts.html. 

69 Military service under the Department of Defense (or Homeland Security for Coast Guard members) counts as 

qualifying employment. If you are no longer in the service, so does employment in other public interest areas such as 

teaching or public law enforcement. 

70 Only federal Direct Loans and Direct Consolidation Loans are qualifying loans for PSLF. If a servicemember 

doesn’t have a Direct Loan, they may be able to take out a new Direct Consolidation Loan. However, if the original 
46 THE OFFICE OF SERVICEMEMBER AFFAIRS

Payments made under Income-Driven Repayment (IDR) plans (including Pay as You Earn and 

Revised Pay as You Earn) are considered qualifying payment plans. These may be one of the best

options for eligible servicemembers because they can both reduce their monthly payments

immediately and maximize the amount of potential loan forgiveness after 10 years of service.

The promise of eventual loan forgiveness pursuant to public service is an enticing benefit that 

could contribute to a servicemember’s decision to remain in the military- since military service 

constitutes public service. Many servicemembers we hear from report having plans to complete 

ten years of military service (at least) in order to achieve loan forgiveness. Unfortunately, we 

commonly hear about the difficulties they encounter on their path to loan forgiveness. In order 

to qualify for PSLF, a borrower must have either a Direct Loan, or a Direct Consolidation loan. 

For servicemembers who wish to qualify for PSLF but have other types of federal loans, they can 

consolidate their existing loans into a Direct Consolidation loan. Unfortunately, if the 

servicemember took out their original federal loans prior to military service, the new 

consolidated loan will no longer qualify for SCRA protections. This is because the loan is no 

longer a pre-service obligation. This is a problem we highlighted in our 2012 student loan 

report, which unfortunately continues today.

71 

Because of the complications and steps necessary to ultimately qualify for and obtain 

forgiveness, we included this information in the Student Loan Action Guide

(http://files.consumerfinance.gov/f/documents/201604_cfpb_servicemember-student-loanguide.pdf), referenced above.

 

loans were taken out prior to their military service, consolidating when on active duty could lead to losing SCRArelated benefits. 

71 http://files.consumerfinance.gov/f/201210_cfpb_servicemember-student-loan-servicing.pdf
 CHARTING OUR COURSE THROUGH THE MILITARY LIFECYCLE 47

Servicemembers who received bonuses or large tax refunds 

should have the opportunity to save a portion

As for most members of the workforce, promotions may bring financial bonuses – often, large 

lump-sum payments. For many, these lump-sum payments may be quickly spent without taking 

advantage of the opportunity to save some of the money for the future. 

The CFPB encourages many consumers, including servicemembers, to save a portion of their tax 

refund. The CFPB’s Tax Time Savings program helps to make savings education available to 

consumers at tax time through various service and product platforms. OSA and the Bureau’s 

Office of Financial Empowerment representatives worked directly with Community Volunteer 

Income Tax Assistance (“VITA”) programs, including Military VITA, to help accomplish this 

educational goal.72

Commanders and other military service providers should be 

armed with the knowledge and tools to assist their troops with 

financial advice

Promotions in the military often mean increased personnel responsibility. New recruits and 

young servicemembers look towards their higher levels of command for advice and guidance –

often related to financial decision-making. It is important for commanders to be armed with the 

knowledge and tools to assist their troops, should questions arise.

In order to help service providers have targeted conversations about finances with the people 

they assist, the CFPB offers Your Money, Your Goals (consumerfinance.gov/your-money-yourgoals/), a toolkit for use by front-line staff and volunteers in social services, legal aid, worker, 

and community organizations. The toolkit allows users to help the people they serve strengthen 

their financial capability and personal money management skills. Your Money, Your Goals 

 

72 https://www.consumerfinance.gov/tax-time-saving/
48 THE OFFICE OF SERVICEMEMBER AFFAIRS

companion guides help provide context for its use with members of Native communities, justiceinvolved individuals, and people with disabilities.

The CFPB has also developed Behind on Bills?, a colorful, curated set of eight tools that help 

people set their own financial goals, track and manage income and spending, plan for and 

prioritize their bills and expenses, and understand their rights and responsibilities when they’re 

contacted by debt collectors. Each tool folds out to a letter-size page to make photocopying easy 

and convenient. 

Recognizing the need for commanders and other military service providers to have a tailored 

guide specifically for servicemembers, veteran and their families, OSA is working with other 

offices within the CFPB to complete a military companion guide. This guide will contain 

additional information, tips, and tools on consumer issues and protections that are specific to 

servicemembers, veterans and their families. 

Transitioning out of Active Service

The CFPB’s financial coaching initiative targets transitioning 

veterans to help them with their financial goals.

Roughly 250,000 servicemembers leave active duty every year, and the financial transition into 

civilian life can be challenging. The Department of Defense offers a Transition Assistance 

Program (TAP), but many transitioning servicemembers lack experience in money management, 

and find after they leave the service that they may need help in reworking the financial plan they 

made while in TAP. At this point, a trusted source of financial information and advice could 

make the difference in a successful transition to a financially stable post-military life.

The CFPB recognized this gap in transition assistance and established the financial coaching 

initiative that serves both transitioning veterans and economically vulnerable consumers to help 

them with their financial goals. The program placed 60 certified financial coaches at 

organizations around the country to provide individualized educational services. The coaches 

hired for the program have experience working with the populations they serve, and are

Accredited Financial Counselors and Financial Fitness Coaches or they are working toward 

these accreditations through the Association for Financial Counseling and Planning Education.
 CHARTING OUR COURSE THROUGH THE MILITARY LIFECYCLE 49

For the veteran population, the financial coaches are located primarily at Department of Laborfunded American Job Centers, plus a few non-profit organizations. For economically vulnerable 

consumers, the financial coaches are located at a diverse set of non-profits.

To date, about 10,000 people have received well over 20,000 financial coaching sessions and 

have made positive progress towards their financial goals.

Many servicemembers are ready to capitalize on their GI Bill 

benefits when transitioning out of active duty

Transitioning out of active duty can leave many servicemembers ready for a new stage in life. 

Nearly 1 million enlisted servicemembers do not have a bachelor’s degree, and for many, that 

means they will capitalize on the opportunity to use the education benefits they earned by 

serving their country, after they transition out.

73 Where and how to use the GI Bill benefit is a 

very important decision for a transitioning servicemember to make. 

To help servicemembers make the most of the hard-earned education benefits, we partnered 

with the Department of Veterans Affairs to help them develop the GI Bill Comparison Tool

(https://www.vets.gov/gi-bill-comparison-tool)74. Before the comparison tool, servicemembers 

wanting to know how much their GI Bill would pay for at a particular school had to go to 17-22 

different websites to get their answer and now they can answer it with just one click75. The new 

 

73 “2015 Demographics: Profile of the Military Community”, Military One Source, 

http://www.militaryonesource.mil/footer?content_id=279104

74 “GI Bill Comparison Tool breaking records, helping Veterans”, VAntage Point, February 2017, 

http://www.blogs.va.gov/VAntage/35078/gi-bill-comparison-tool-breaking-records-helping-veterans

75 “New Online GI Bill Comparison Tool Available”. Department of Veterans Affairs, Office of Public and 

Intergovernment Affairs, February 4th, 2014 at https://www.va.gov/opa/pressrel/pressrelease.cfm?id=2517
50 THE OFFICE OF SERVICEMEMBER AFFAIRS

tool has helped over 1.74 million servicemembers, veterans, and their families make more 

informed decisions on choosing and paying for college76. 

The tool is off to a great start, as noted in a recent blog released by the VA citing usage statistics. 

During January 2017 alone almost 80,000 users visited the tool, and the page itself has received 

over 5 million page views since its inception.77

In July 2016, the Office of Servicemember Affairs hosted a live forum 

(https://www.consumerfinance.gov/servicemembers/on-demand-forums-and-tools) on tools 

that can be used to compare student financial aid costs, including the GI Bill comparison tool, 

and where servicemembers and veterans can submit a complaint if they are experiencing a 

problem with a student loan. The forum also discussed resources offered by the VA and the DoD

if a servicemember is having a problem with their school or program.

 

76 “GI Bill Comparison Tool breaking records, helping Veterans”, VAntage Point, February 2017, 

http://www.blogs.va.gov/VAntage/35078/gi-bill-comparison-tool-breaking-records-helping-veterans

77 http://www.blogs.va.gov/VAntage/35078/gi-bill-comparison-tool-breaking-records-helping-veterans/
 CHARTING OUR COURSE THROUGH THE MILITARY LIFECYCLE 51

Source: Office of Servicemember Affairs Virtual Forum “News Team”

The principles of excellence work to hold educational 

institutions accountable for quality programs provided to 

those who use military-related benefits

We have also been working with the VA, DoD, ED, and the DOJ to protect servicemembers, 

veterans and their families from certain schools that aggressively market to servicemembers to 

take advantage of their GI Bill benefits.” In 2012, President Obama signed Executive Order 

13607, “Establishing Principles of Excellence for Education Institutions Serving Service 

Members, Veterans, Spouses, and Other Family Members.” 

The Order directed the VA, DoD, ED, and DOJ, in consultation with the Bureau, to create a 

system that would hold educational institutions accountable for the quality of the programs that 

they provide to those who use military-related education benefits. Its intent was to give military 

personnel, veterans, and their families the information they need to make informed decisions 

about where to spend their hard-earned military benefit dollars – and a place to complain if 

things went wrong.
52 THE OFFICE OF SERVICEMEMBER AFFAIRS

Specifically, the Executive Order required agencies to stand up the following: principles of 

excellence for educational institutions serving servicemembers; a centralized complaint system 

than can be tracked by federal agencies and field responses for students receiving federal 

military and veterans educational benefits; streamlined tools to compare the affordability and 

value of educational institutions; new uniform rules and strengthening of existing procedures 

for educational institutions to access military installations; and more. 

Veteran Status

Servicemembers transitioning to veteran status bring a host of questions and challenges, 

including financial ones. According to a survey by a non-profit, servicemembers have reported 

low participation in formal financial literacy and planning programs, so it is not surprising that 

veterans continue to identify financial issues as a large stressor in their lives. 78 Census Bureau 

data informs us that veterans do report higher median incomes than non-veterans, but that 

income data includes Social Security, retirement pensions and VA payments.79 However,

younger veterans have significantly higher rates of unemployment than non-veterans.80 

The higher unemployment rates for young veterans was the catalyst for locating many of the

financial coaches provided by the CFPB (discussed above) at American Job Centers. The 

American Job Centers help unemployed veterans find a job, identify training programs, and gain 

skills in growing industries. Our financial coaching initiative aims to provide financial coaching 

services at critical points in veterans’ lives, especially as they transition from military service or 

from being unemployed. 

 

78 2015 Blue Star Families Military Lifestyle Survey, pg. 20, para. 7. https://bluestarfam.org/survey-moreresults/

79 Id. at pg. 9.

80 Data available at: http://www.dol.gov/vets/newsletter/pdf/January2017-VETS.pdf
 CHARTING OUR COURSE THROUGH THE MILITARY LIFECYCLE 53

Older veterans, as with older consumers in general, may possess significant assets accumulated 

over their lifetimes (e.g. savings, mutual funds, pensions, and home equity). We collaborate with 

Veteran Service Organizations (VSOs), state and local governments and other non-profit 

organizations to educate veterans about sound financial decision making and protecting older 

consumers from financial exploitation. The CFPB also offers educational materials for older 

consumers that are relevant to older veterans. These include information on the factors in 

deciding when to claim their Social Security,

81 how to protect social security and VA benefits 

from garnishment,

82 what to consider if you have the option of a lump sum pension payout, 83

and facts to know before getting a reverse mortgage.84 

OSA’s veteran outreach plan leverages relationships with 

national, regional and local veteran service organizations 

(VSOs) due to the population being widely dispersed across 

the US

Due to a widely dispersed veteran population,

85 OSA developed a veteran outreach plan that 

leverages relationships with national, regional and local veteran service organizations (VSOs). 

VSOs have been recognized by Congress as far back as 1879, and by virtue of their sizeable 

memberships, many VSOs have tremendous reach and can provide OSA with a platform to 

 

81 https://www.consumerfinance.gov/retirement/before-you-claim/

82 https://www.consumerfinance.gov/askcfpb/1157/can-creditor-garnish-my-social-security-benefits-pay-debt.html

83 https://www.consumerfinance.gov/about-us/blog/key-tips-to-consider-if-choosing-a-lump-sum-pension-payout/

84 https://www.consumerfinance.gov/about-us/blog/updated-reverse-mortgage-guide-two-things-you-shouldknow/

85 https://www.va.gov/vetdata/docs/Maps/VetPop14_State.pdf
54 THE OFFICE OF SERVICEMEMBER AFFAIRS

engage veterans.

86 However, VSOs as a group only count about 25% of the total veteran 

population as members and are therefore not the only organizations that have direct contact 

with veterans. Governments at the federal, state and local levels are also intimately involved 

with veterans’ lives and thus have developed significant trust and rapport.

OSA has continually worked to expand and diversify its outreach to the Nation’s 22 million 

veterans by conducting more than 40 veteran outreach events and webinars since 2011. Our 

ongoing focus has been on collaborating with federal, state and local governmental agencies and 

not-for-profit military and veteran support organizations. As shown on the map in Appendix B, 

OSA has hosted and participated in events across America in order to educate and engage 

America’s veterans on the many CFPB tools and resources available to them.

 

86 The largest VSOs are the Veterans of Foreign Wars and the American Legion and both have over 2 million 

members. https://www.va.gov/vso/VSO-Directory_2013-2014.pdf
 CHARTING OUR COURSE THROUGH THE MILITARY LIFECYCLE 55

4. Where OSA is headed

There are many stages in the Military Lifecycle and life events within those stages. In accordance 

with our three statutory missions (educate and empower; monitor complaints; coordinate with 

state and federal agencies), OSA, and the CFPB as a whole, will continue to work towards 

improving the financial lives of servicemembers, veterans, and their family members at every 

stage of their military careers. 

Source: U.S. Airman during OSA outreach event

We will continue to listen to and engage with the military community. OSA’s outreach efforts are

designed to reach members of the military community through multiple channels that intersect 

with their personal and professional lives. These activities range from conducting in-person 

military consumer finance/consumer protection training classes for professionals, to facilitating 

military leadership discussions on servicemember financial well-being issues, to engaging the 
56 THE OFFICE OF SERVICEMEMBER AFFAIRS

larger military community across digital channels. The results of these continued efforts can be 

found in Appendix B: OSA By The Numbers. 

We look forward to the important journey ahead. 
 CHARTING OUR COURSE THROUGH THE MILITARY LIFECYCLE 57

APPENDIX A: EDUCATIONAL RESOURCES

Tools for every stage

HAVE AN ISSUE? SUBMIT A COMPLAINT.

Having a problem with a financial product or service? Submit a complaint. We’ll work to get you 

a response from the company. The process is simple. Tell us about your issue – we’ll forward it 

to the company and work to get you a response, generally within 15 days. By coming to us, 

you aren’t just helping yourself. You are also helping other people avoid similar issues. 

In just five years, we’ve handled over 1 million consumer complaints. 

https://www.consumerfinance.gov/complaint/

HAVE QUESTIONS? ASK CFPB. 

Financial matters can be complicated. Get the facts you need to make choices about money, 

credit scores, mortgages, and more. We offer clear, impartial answers to hundreds of financial 

questions. Find the information you need to make more informed choices about your money.

https://www.consumerfinance.gov/askcfpb/

DEBT COLLECTOR CALLS? KNOW YOUR RIGHTS AS A SERVICEMEMBER

When a debt collector calls, your best response is to confront the situation head-on. Take action 

to protect yourself – and protect your rights, by knowing what’s OK for a debt collector to do and 

what’s not.

https://s3.amazonaws.com/files.consumerfinance.gov/f/CFPB-Servicemembers-Know-YourRights-Handout-Debt-Collection.pdf

CREDIT SCORES? IDENTITY THEFT? CHECK YOUR CREDIT REPORT AT LEAST ONCE A YEAR

Free ways to check your credit report to find and fix mistakes, update your information, and 

guard against identity theft.

https://pueblo.gpo.gov/CFPBPubs/CFPBPubs.php?PubID=13002
58 THE OFFICE OF SERVICEMEMBER AFFAIRS

HELP PROTECT OTHERS? TELL YOUR STORY.

Share your story, good or bad, about your experience with a consumer financial product or 

service. Your story will help inform how we work to protect consumers to create a fairer 

marketplace.

https://help.consumerfinance.gov/app/tellyourstory

Delayed Entry Program 

MISADVENTURES IN MONEY MANAGEMENT

Specifically for young people waiting to begin their military service. Misadventures in Money 

Management is a virtual financial education learning experience that fills a critical gap in 

financial education for DEP participants. Focuses on smart consumer decision-making and 

money and credit and debt management, with an eye to helping recruits avoid the financial 

problems that routinely arise during their initial months on active duty. 

Ask your recruiter for access

Recruit Basic Training 

CHOOSING A NEW BANK ACCOUNT? MILITARY MONEY 1-2-3: HOW TO PICK A BANK ACCOUNT 

Follow these guidelines to find a military-friendly bank account that meets your needs and offers 

good rates. 

https://pueblo.gpo.gov/CFPBPubs/CFPBPubs.php?PubID=102

PAYING OFF STUDENT LOANS? TACKLING STUDENT LOAN DEBT

As a servicemember, you have options for lowering your student loan interest rate, reducing 

your monthly payments now and possibly qualifying for loan forgiveness after 10 years. Learn 

the steps.

https://s3.amazonaws.com/files.consumerfinance.gov/f/documents/201604_cfpb_servicemembe

r-student-loan-guide.pdf
 CHARTING OUR COURSE THROUGH THE MILITARY LIFECYCLE 59

WANT TO BUY A CAR? ARM YOURSELF WITH KNOWLEDGE WHEN SHOPPING FOR AN AUTO 

LOAN

Tips and precautions to take into consideration when entering into an auto loan.

http://www.consumerfinance.gov/about-us/blog/arm-yourself-knowledge-when-shopping-autoloan/

FRAUD PROTECTION TOOLS TO HELP SAFEGUARD SERVICEMEMBERS

This tool explains the three kinds of alerts available to you as a servicemembers to protect your

credit files from fraud or identity theft.

https://s3.amazonaws.com/files.consumerfinance.gov/f/documents/201604_cfpb_servicemembe

r-student-loan-guide.pdf

First permanent duty station

MOVING YOUR CHECKING ACCOUNT? FOLLOW THIS CHECKLIST

A 10-step checklist to help consumers close their current checking account and open a new 

checking account.

https://pueblo.gpo.gov/CFPBPubs/CFPBPubs.php?PubID=13008

WANT TO BUY A HOUSE? CHECK OUT “OWNING A HOME: TOOLS AND RESOURCES FOR 

HOMEBUYERS”

Whether you’re just thinking about buying a home or about to close, we help you take control of 

the process.

https://www.consumerfinance.gov/owning-a-home/

MY NEW MONEY GOAL

Having a plan is the easiest way to reach new money goals, navigate changes in income, or 

switch priorities in our lives. You would not start a road trip without mapping it out first, and the 

same is true with your finances. This guide will help you gain a clear view of where your money 

goes now so you can more easily decide where you want it to go in the future.

https://pueblo.gpo.gov/CFPBPubs/CFPBPubs.php?PubID=13057
60 THE OFFICE OF SERVICEMEMBER AFFAIRS

THINKING OF BORROWING MONEY? YOUR RIGHTS UNDER THE MILITARY LENDING ACT

The Military Lending Act (MLA) says that you can’t be charged a military annual percentage rate 

higher than 36% on most types of consumer loans and provides other significant rights.

https://www.consumerfinance.gov/askcfpb/1783/what-are-my-rights-under-military-lendingact.html

CONSIDERING CREDIT CARDS? HOW TO FIND THE BEST CREDIT CARD

Four steps to shopping for a credit card, and definitions of credit card terms.

https://pueblo.gpo.gov/CFPBPubs/CFPBPubs.php?PubID=13040

Permanent Change of Station

STOPPING AUTOMATIC PAYMENT FROM YOUR ACCOUNT? WHAT YOU NEED TO KNOW

Before you give anyone your bank account number and permission to automatically withdraw 

money from your bank account on a regular basis, it’s good to know how automatic debits work, 

what to be careful about, and how to stop the automatic payments if you cancel the service or 

just change your mind about how you want to pay.

https://www.consumerfinance.gov/about-us/blog/you-have-protections-when-it-comes-toautomatic-debit-payments-from-your-account/

PCS’ING WITH AN AUTO LEASE? CANCEL OR TERMINATE MY AUTO LEASE WITHOUT PAYING 

EARLY TERMINATION CHARGES OR A PENALTY

Under certain circumstances, the Servicemembers Civil Relief Act (SCRA) allows you as an

active duty service member to terminate an auto lease without having to pay early termination 

charges or a penalty.

https://www.consumerfinance.gov/askcfpb/889/i-am-military-and-i-have-been-ordered-moveoverseas-or-deploy-can-i-get-out-my-car-lease-without-paying-penalty.html

PCS’ING WITH AN UNDERWATER HOME? FIND ASSISTANCE TO HELP SELL YOUR HOME 

WITHOUT OWING MONEY AFTER THE SALE

If your home is underwater and you have received PCS orders, you may be able to sell your 

home and not have to pay back the rest of your loan balance.
 CHARTING OUR COURSE THROUGH THE MILITARY LIFECYCLE 61

https://www.consumerfinance.gov/askcfpb/308/my-home-is-underwater-and-I-received-aPermanent-Change-of-Station-PCS-Order-Is-there-assistance-to-help-me-sell-my-homewithout-owing-money-after-the-sale.html

MISTAKE ON YOUR CREDIT CARD BILL? HOW TO FIX IT

Five steps to dispute incorrect charges or fees on a credit card bill.

https://pueblo.gpo.gov/CFPBPubs/CFPBPubs.php?PubID=13115

GOOD CREDIT - I WANT THAT! 

You know it’s important to have good credit. But, there’s still a lot of confusion about how to 

actually build and keep a good credit report.

http://www.consumerfinance.gov/blog/good-credit-i-want-that/

SAVED: FIVE STEPS FOR MAKING FINANCIAL DECISIONS

To find the best deal when you buy a financial product or service stop, ask, verify, estimate and 

decide.

https://pueblo.gpo.gov/CFPBPubs/CFPBPubs.php?PubID=13123

Significant Life Events 

Getting married

MANAGING SOMEONE ELSE’S MONEY

This guide helps family members and others understand their role as an agent under a power of 

attorney. It provides guidelines on how to carry out their duties in making financial decisions for 

someone else, how to watch out for financial exploitation and protect assets from scams, and 

where to go for help.

https://pueblo.gpo.gov/CFPBPubs/CFPBPubs.php?PubID=13041
62 THE OFFICE OF SERVICEMEMBER AFFAIRS

Becoming a parent

THE ABCS OF MONEY MANAGEMENT FOR MILITARY KIDS

Back-to-school season is an opportunity for you as a military parent to teach your children 

money management lessons. This blog provides military parents with tips on how to teach your 

kids about money management.

http://www.consumerfinance.gov/about-us/blog/abcs-money-management-military-kids/

RESOURCES FOR PARENTS

Information to help parents communicate with you children about money and financial issues.

http://www.consumerfinance.gov/parents/

MONEY AS YOU GROW

Activities, conversation starters, and tips for parents and caregivers. Use these age-appropriate 

resources to support your children as they develop skills, habits, and knowledge that can serve 

them well in their future financial lives.

http://www.consumerfinance.gov/money-as-you-grow/

Illness or Death

7 WAYS TO KEEP MEDICAL DEBT IN CHECK

Medical collections are so widespread, that an estimated 43 million consumers with an account 

in collection have medical debt. Here are steps you can take to keep medical debt in check.

http://www.consumerfinance.gov/blog/consumer-advisory-7-ways-to-keep-medical-debt-incheck/

CONSUMER ADVISORY AND INVESTOR BULLETIN: PLANNING FOR DIMINISHED CAPACITY AND 

ILLNESS

This joint CFPB and SEC advisory helps consumers plan for the possibility of incapacity.

http://www.consumerfinance.gov/about-us/blog/planning-for-financial-decisions-as-you-age/
 CHARTING OUR COURSE THROUGH THE MILITARY LIFECYCLE 63

Rough patches & falling behind

BEHIND ON BILLS? START WITH ONE STEP.

Behind on Bills is a colorful and compact resource with eight curated tools targeted at income 

and expense tracking and managing bills.

https://pueblo.gpo.gov/CFPBPubs/CFPBPubs.php?PubID=13263

DEBT COLLECTION SAMPLE LETTERS

These are five action letters that you can consider using when replying to debt collectors. 

These letters can help you get valuable information about claims being made against you or 

protect yourself from unwanted collection activities. 

http://www.consumerfinance.gov/about-us/blog/debtcollection/

FOUR STEPS YOU CAN TAKE IF YOU THINK YOUR CREDIT OR DEBIT CARD WAS HACKED

Keep a close eye on your account activity and report suspicious transactions quickly if you 

believe someone stole your credit or debit card information.

https://pueblo.gpo.gov/CFPBPubs/CFPBPubs.php?PubID=13119

NEED HELP WITH YOUR MORTGAGE? DON'T GET SCAMMED

Describes what mortgage relief scams are and offers tips on how to spot and avoid them. It also 

includes information on how to get help. 

https://pueblo.gpo.gov/CFPBPubs/CFPBPubs.php?PubID=13037

ACT FAST TO AVOID FORECLOSURE

What to do when you can't afford your mortgage payment. This short checklist provides troubled 

borrowers with quick action steps to get help and find out about options to avoid foreclosure.

https://pueblo.gpo.gov/CFPBPubs/CFPBPubs.php?PubID=13131
64 THE OFFICE OF SERVICEMEMBER AFFAIRS

Natural Disaster

YOUR DISASTER CHECKLIST

This is a checklist to help you gather the financial information you would need after an 

emergency. It contains spaces for account information and customer service numbers as well 

as checklists of important documents to have in case of an emergency.

https://pueblo.gpo.gov/CFPBPubs/CFPBPubs.php?PubID=13036

BE YOUR FAMILY’S FINANCIAL ACTION HERO DURING AN EMERGENCY

This blog provides you with steps to take to be financially prepared for major emergencies or 

even minor setbacks before they happen.

http://www.consumerfinance.gov/about-us/blog/be-your-familys-financial-action-hero-duringemergency/

Deployment / Post Deployment Transition

SERVICEMEMBER FRAUD ALERT

The Fraud Alert Fact Sheet provides you with the information you need to know about getting 

protective alerts inserted into credit reports when you’re away.

https://s3.amazonaws.com/files.consumerfinance.gov/f/201508_cfpb_fraud-protection-tools-tohelp-safeguard-servicemembers.pdf

DEPLOYING WITH STUDENT LOANS? TACKLING STUDENT LOAN DEBT

As a servicemember, you have options for lowering your student loan interest rate, reducing 

your monthly payments now and possibly qualifying for loan forgiveness after 10 years. Learn 

the steps.

https://s3.amazonaws.com/files.consumerfinance.gov/f/documents/201604_cfpb_servicemembe

r-student-loan-guide.pdf
 CHARTING OUR COURSE THROUGH THE MILITARY LIFECYCLE 65

DEPLOYING WITH AN AUTO LEASE?: CAN I CANCEL OR TERMINATE MY AUTO LEASE 

WITHOUT PAYING EARLY TERMINATION CHARGES OR A PENALTY?

Under certain circumstances, the Servicemembers Civil Relief Act (SCRA) allows active duty 

servicemembers to terminate an auto lease without having to pay early termination charges or a 

penalty.

https://www.consumerfinance.gov/askcfpb/889/i-am-military-and-i-have-been-ordered-moveoverseas-or-deploy-can-i-get-out-my-car-lease-without-paying-penalty.html

MANAGING SOMEONE ELSE’S MONEY

This guide helps family members and others understand their role as an agent under a power of 

attorney. It provides guidelines on how to carry out their duties in making financial decisions for 

someone else, how to watch out for financial exploitation and protect assets from scams, and 

where to go for help.

https://pueblo.gpo.gov/CFPBPubs/CFPBPubs.php?PubID=13041

SEND MONEY ABROAD WITH MORE CONFIDENCE FACT SHEET

This factsheet explains the consumer protections that apply when you send remittance transfers 

covered by the CFPB’s remittance transfer rule.

https://pueblo.gpo.gov/CFPBPubs/CFPBPubs.php?PubID=13062

Reenlistment/ Promotion

UNPAID DEBTS? DON’T LET THEM BECOME A MILITARY CAREER-KILLER

Military personnel who have trouble handling their personal finances can find their duty status, 

potential promotions, and even their military careers in jeopardy. Over time, the burden of debt 

also can add stress to their personal relationships and damage their credit profile. This blog 

provides information to help military consumers think about what to do when a financial problem 

arises.

http://www.consumerfinance.gov/about-us/blog/are-unpaid-debts-a-military-career-killer/
66 THE OFFICE OF SERVICEMEMBER AFFAIRS

SERVING WITH STUDENT LOANS? YOU MAY QUALIFY FOR LOAN FORGIVENESS

Public Service Loan Forgiveness is a program designed to help you manage your student loan 

debt while pursuing a career in public service (including the military). 

http://www.consumerfinance.gov/askcfpb/641/what-public-service-loan-forgiveness.html

SERVICEMEMBERS: KNOW YOUR RIGHTS WHEN A DEBT COLLECTOR CALLS

For servicemembers, trouble with your personal finances can put your duty status, potential 

promotions and even your military career in jeopardy. Take action to protect yourself – and 

protect your rights, by knowing what’s OK for a debt collector to do and what’s not.

https://www.consumerfinance.gov/f/CFPB-Servicemembers-Know-Your-Rights-Handout-DebtCollection.pdf

TAX TIME SAVINGS: READY? SET. SAVE!

A tax refund may be the single biggest check some consumers receive all year. It presents a 

huge opportunity for individuals to set aside savings to help reach their financial goals. Saving 

money from a tax refund can be done easily and automatically while filing a tax return. “Ready? 

Set. Save!” offers resources to help service providers learn more about tax time saving options 

to better help those they serve.

http://www.consumerfinance.gov/about-us/blog/taxtime2015/

Transitioning out of Active Service 

PLANNING FOR RETIREMENT

Planning for Retirement is an interactive online educational tool to help people make an 

informed decision about when to claim Social Security. More than 2 million consumers make 

this important financial decision each year. Many consumers start collecting benefits at the 

earliest possible claiming age without understanding that claiming early may reduce their total 

benefits, and thereby reduce their financial security in retirement. The tool helps consumers 

understand how their claiming age affects their benefits, provides tips relevant to their situation, 

and prompts consideration of retirement needs and goals.

http://www.consumerfinance.gov/retirement/before-you-claim/
 CHARTING OUR COURSE THROUGH THE MILITARY LIFECYCLE 67

CHOOSING A FINANCIAL PROFESSIONAL

This guide encourages servicemembers, veterans, and other consumers to check a financial 

adviser’s background before deciding where to get help in making important financial decisions. 

Not all titles or credentials for financial professionals are the same.

http://files.consumerfinance.gov/f/201401_cfpb_guide_choosing-financial-professional.pdf

3 PENSION ADVANCE TRAPS TO AVOID

Many retirees depend on a pension to cover day-to-day as well as unexpected expenses. This 

advisory helps older consumers think through the issues if they are considering a pension 

advance.

http://files.consumerfinance.gov/f/201503_cfpb_protect-your-retirement-pension.pdf

KEY TIPS TO CONSIDER IF CHOOSING A LUMP SUM PENSION PAYOUT

Things to know and do if you have the option of taking out a lump-sum payout on your pension

https://www.consumerfinance.gov/about-us/blog/key-tips-to-consider-if-choosing-a-lump-sumpension-payout/

Becoming a veteran

WANT TO BUY A HOUSE? CHECK OUT “OWNING A HOME: TOOLS AND RESOURCES FOR 

HOMEBUYERS”

Whether you’re just thinking about buying a home or about to close, we help you take control of 

the process.

https://www.consumerfinance.gov/owning-a-home/

WANT TO GO TO COLLEGE? PAYING FOR COLLEGE

Resources targeted to students and families evaluating their options when financing a higher 

education: Student financial guides, Compare financial aid offers, and Repay student debt. The 

resources address the entire life cycle of financing college, from comparing college costs and 

financial aid offers, to shopping for a loan, through assessing options to repay student loan debt 

after graduation. 
68 THE OFFICE OF SERVICEMEMBER AFFAIRS

http://www.consumerfinance.gov/paying-for-college/

DEBT COLLECTORS: CAN THEY TAKE MY SOCIAL SECURITY OR VA BENEFITS?

Generally, a debt collector cannot take funds from your Social Security or VA benefits directly 

out of your bank account or prepaid card. Read about the details in Ask CFPB.

http://www.consumerfinance.gov/askcfpb/1157/can-creditor-garnish-my-social-security-benefitspay-debt.html

PROTECTING AGAINST FRAUD AND FINANCIAL EXPLOITATION

“Money Smart for Older Adults” helps older people, family caregivers, senior service providers, 

financial service professionals, and others to prevent, recognize, and report financial 

exploitation. The program also encourages advance financial planning and informed decisionmaking. Produced in collaboration with the Federal Deposit Insurance Corporation (FDIC). 

https://www.consumerfinance.gov/educational-resources/resources-for-older-adults/protectingagainst-fraud/
 CHARTING OUR COURSE THROUGH THE MILITARY LIFECYCLE 69

APPENDIX B: OSA BY THE NUMBERS
 1 MAR 2017

The CFPB’s Office of Servicemember Affairs ensures 

that military personnel and their families have a voice

About our mission:

1. We monitor military consumer complaints and the resolution of those complaints;

2. We develop and implement initiatives to educate and empower servicemembers and their 

families to make better-informed decisions regarding consumer financial products and services; and

3. We coordinate the efforts of Federal and State agencies regarding consumer protection measures 

for servicemembers, veterans and their families, with a view toward improving consumer-protection 

measures for military personnel and their families.

The Office of Servicemember Affairs (OSA) by the numbers:

 $130 million: approximate amount of relief through CFPB enforcement actions to 

servicemembers, veterans and their families harmed by illegal practices

 $60 million+: relief back to over 78,000 servicemembers harmed by SCRA violations identified 

through OSA’s monitoring of complaints

 $35 million+: the estimated amount saved in payday loan payments per year after drafting and 

implementation of the new DoD Military Lending Act rules, with support from technical 

assistance by the CFPB 

 $3.3 million: approximate amount of monetary relief provided to military consumers that 

submitted a complaint to the CFPB, as reported by companies

 72,000+: complaints from servicemembers, veterans and their families handled from July 2011 

through February 2017

 66,000: total number of visitors to www.consumerfinance.gov/servicemembers

 46,000+: quantity of financial education products provided to military leaders, service

providers, servicemembers, veterans and their families by OSA
1 MAR 2017

 1.3 million: active duty servicemembers affected by DoD’s policy change to end the use of 

military allotments for purchase, rent, or lease of personal property, based on consultation 

with OSA1

 7,000+: number of future servicemembers participating in OSA’s financial literacy training 

before attending basic training

 1,000+: number of Ask CFPB questions with answers to commonly-asked consumer 

questions, with dozens of servicemember-specific questions

 148: visits to military installations since 2011

 50 states: complaints received from all 50 states and from all branches of the military 

The OSA staff brings more than 200 years of combined experience to military 

consumers. 

Touching military consumers in every state, nationwide, including:

1 Press release announcing DoD allotment policy changes at https://www.defense.gov/News/News-Releases/NewsRelease-View/Article/605286/department-of-defense-announces-new-policy-on-service-member-allotments
72 THE OFFICE OF SERVICEMEMBER AFFAIRS

APPENDIX C: MORE ABOUT THE CFPB

WEBSITE:

www.consumerfinance.gov

CONSUMER COMPLAINTS AND QUESTIONS:

Webpage: consumerfinance.gov/complaint

Toll free number: (855) 411-CFPB (2372) 

TTY/TDD: (855) 729-CFPB (2372) 

Fax number: (855) 237-2392

Hours of operation: 8 a.m. - 8 p.m. EST, Monday - Friday, services in 180+ languages

Mailing address:

Consumer Financial Protection Bureau

PO Box 4503

Iowa City, Iowa 52244

Headquarters address:

Consumer Financial Protection Bureau

1625 Eye Street N.W.

Washington, D.C. 20006

Consumer Financial Protection Bureau

1275 First St. N.E.

Washington, D.C. 20002

LIBRARY RESOURCES:

http://www.consumerfinance.gov/library-resources/

WHISTLEBLOWERS:

Email: whistleblower@consumerfinance.gov

Toll free number: (855) 695-7974

PRESS & MEDIA REQUESTS:

Email: press@consumerfinance.gov
 CHARTING OUR COURSE THROUGH THE MILITARY LIFECYCLE 73

APPENDIX D: MILITARY LIFECYCLE RESOURCE 

HANDOUT
Lifecycle of the military consumer

Military occupational 

training

Delayed entry 

 period

Significant 

life event

Promotion

Permanent 

change of station

Post 

deployment 

transition

Reenlistment

Veteran 

status

Recruit basic 

training

Deployment

Retirement

First permanent 

duty station



BASE


Resources for military consumers

Recruit basic training

§ Choosing a bank account 

consumerfinance.gov/military-bank-account.pdf

§ Tackling student loan debt 

consumerfinance.gov/military-student-loanguide.pdf

§ Getting an auto loan

consumerfinance.gov/auto-loan

BASE

First permanent duty station

§ Owning a Home tool 

consumerfinance.gov/owningahome

§ Blog: The VA doesn’t send you mortgage ads 

consumerfinance.gov/VA-mortgage-ads

Significant life event

§ Ask CFPB: the Military Lending Act 

consumerfinance.gov/askcfpb/1783

§ Blog: The ABCs of money management for 

military kids 

consumerfinance.gov/money-managementmilitary-kids

Promotion/ Reenlistment

§ Blog: Are unpaid debts a military career killer? 

consumerfinance.gov/unpaid-debts-military

§ Servicemembers: know your rights when a debt 

collector calls

consumerfinance.gov/military-debt-collection.pdf

Deployment

§ Fraud protection tools to help safeguard 

servicemembers 

consumerfinance.gov/fraud-protectionservicemembers.pdf

Permanent change of station

§ Ask CFPB: PCS’ing with an auto lease? How to 

cancel or terminate 

consumerfinance.gov/askcfpb/889

§ Ask CFPB: My home is underwater and I 

received PCS orders

consumerfinance.gov/askcfpb/308

§ Good credit, I want that!

consumerfinance.gov/good-credit

Veteran status

§ Paying for College 

consumerfinance.gov/paying-for-college

§ Financial coaching

consumerfinance.gov/financial-coaching

Retirement

§ Planning for retirement 

consumerfinance.gov/retirement-planning

§ Pension traps to avoid 

consumerfinance.gov/pension-traps.pdf