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According to The Washington Post, these three companies: USA Discounters, Freedom Furniture and Electronics, and Military Credit Services, sell goods to service members on credit and then, if they fall behind, go after them in Virginia courts, regardless of where the service members are based. Together the three companies have filed 35,000 lawsuits in a little under a decade.
Anybody deal with these companies? Any others we should know about?
Definitely candidates for a commander's list of off limits establishments!
http://www.theatlantic.com/business/archive/2014/07/how-to-swindle-soldiers/375090/
Anybody deal with these companies? Any others we should know about?
Definitely candidates for a commander's list of off limits establishments!
http://www.theatlantic.com/business/archive/2014/07/how-to-swindle-soldiers/375090/
Posted in these groups: 
Fraud
Fraud
Posted >1 y ago
Responses: 11
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This blatant exploitation of our junior service members still fires me up. Any other companies out there operating like this?
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MSG Wade Huffman
Unfortunately I'm sure there are, especially if you count the local "we finance E-1 and up" establishments outside of every gate. The best we can do is continue to educate our troops and call these businesses out whenever possible.
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I have heard of at least one of these companies and they do advertise (heavily) around military installations. I fairly sure I've even seen their flyers in post newspapers in the past as well. It's bad enough that they are exploiting service members on the initial purchase (2-3 times the value of the item sold at a minimum); but to then use a loophole in the law to preclude the ability of the service member to represent themselves is unconscionable.
I agree that Commanders (or even the services themselves) should unite and place these businesses 'off limits'.
I agree that Commanders (or even the services themselves) should unite and place these businesses 'off limits'.
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LTC Jason Strickland
MSG Wade Huffman, it's ridiculous that companies are doing this to our service members - and getting away with it!
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Thank you sir for posting this. Any company that would go after anyone like they do is nobody any of us should be doing business with.
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With all the swindlers out there, some vendors do give real discounts to military and veterans. I was with my daughter and son in law eating in a place called Nando's Peri Peri I had on one of my Marine Corps shirts and when I went to pay the young guy at the cash register asked if I was a vet and I said yes the discount was 20%. I thought that was pretty good. I also laughed when he said he always gives it to soldiers and Marines. lol
One business I have found at a government conference is http://www.govx.com/ any vet or active member can sign up and sometimes you get a good discount sometimes not but you don't have to buy. BTW they have everything from sunglasses to bikes etc.
We here on RP should start a list of legit discounts with percentages & other info. for military & vets.
Opinions?
One business I have found at a government conference is http://www.govx.com/ any vet or active member can sign up and sometimes you get a good discount sometimes not but you don't have to buy. BTW they have everything from sunglasses to bikes etc.
We here on RP should start a list of legit discounts with percentages & other info. for military & vets.
Opinions?
Military & Government Discounts on 250+ Brands | GovX
The largest Military & Government exclusive ecommerce site offering discounts up to 50% off current season goods from 250+ top lifestyle and tactical brands.
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LTC Jason Strickland
Cpl Brett Wagner, another organization that offers online discounts - which is really difficult to offer to anyone because there are so many posers out there - is ID.me. Visit their website, http://www.id.me to check it out. In fact, the way you were verified on RallyPoint was through their Troop ID widget. CPT Blake Hall and CPT Matthew Thompson are the founders and making A LOT of headway in this area.
ID.me – Turn Your Identity Into Currency And Access.
ID.me allows you to create a single sign-on and verify your group status to unlock exclusive discounts, rewards and resources.
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We have a freedom out here in Oceanside just outside of Camp Pendleton. I have seen their advertisements and they always show what the price per pay day is. The other big thing they talk about is financing E1 and up. Basically this goes into the same group when I brief my new joins as the local used car lots. Basically anything that advertises proces by pay period or that they finance E1 and up should be avoided as they are going to have astrnomical interest rates. Also don't worry about monthly payments as much as you worry about total price paid.
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Pretty hard for a company to get any lower than stealing from military servicemen and women. The very people who protect these same belly whopping slime are getting taken to the cleaners by them.
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SSgt Gregory Guina
The bad thing is a lot of people working in these establishments are former service members. There was a used car lot out here that advertised financing E1 and up that was run by a retired SgtMaj. The company was charging 25+% interest on top of overpricing their vehicles. Really Really sad day to see that.
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Cpl Brett Wagner
SSgt Gregory Guina - It is sad but I know there is always a roach that slips by isn't there? If it was outside a base the base C.O. should have made it off limits and see how the SgtMaj likes that. I knew a retired Gunny (Viet Nam vet) who I liked and respected for about 10 years and then we learned through the news he was a pedophile. It really broke my heart and that of other Marines that knew him. These people make it through years of service only to embarrass and dishonor our reputation.
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We return to educating about financial issues early and often. Sadly we cant prevent a junior enlisted member from entering into these sorts of binding contracts but we can strongly advise them otherwise & give them ample reasons to dissuade them making that choice.
It is a choice - like it or not. I think it goes to mind set and having tangible money for the first time with little to no spending control patterns for experience. This is just another example of 'we can't protect you from yourself'.
Do these companies 'prey' on vulnerable members ... yes, that is what the business model is designed to do. Educate, educate, educate - that is what we can do and hope the knowledge is absorbed.
It is a choice - like it or not. I think it goes to mind set and having tangible money for the first time with little to no spending control patterns for experience. This is just another example of 'we can't protect you from yourself'.
Do these companies 'prey' on vulnerable members ... yes, that is what the business model is designed to do. Educate, educate, educate - that is what we can do and hope the knowledge is absorbed.
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Here is a new article in Army Times about this issue:
http://www.armytimes.com/article/20141022/NEWS01/310220053/Commentary-Breaking-cycle-debt-troops-families?sf32852226=1
The spouse of a member of the Illinois National Guard took out a loan of $2,575 in Illinois. Due to triple-digit interest rates, the family spent more than $8,000 to repay the loan.
In South Carolina, a service member took out a $1,615 loan. The total interest charges? Over $15,000.
These stories of unfair and abusive lending practices that target service men and women are all too common. Payday lenders, car title lenders and other high-cost lenders crowd around military bases and aggressively market to military families.
Once an unaffordable loan is taken, subsequent loans are needed to pay off the previous ones creating a long term cycle of debt. In fact, the Defense Department found that more than one in 10 troops have taken out a high-cost loan.
http://www.armytimes.com/article/20141022/NEWS01/310220053/Commentary-Breaking-cycle-debt-troops-families?sf32852226=1
The spouse of a member of the Illinois National Guard took out a loan of $2,575 in Illinois. Due to triple-digit interest rates, the family spent more than $8,000 to repay the loan.
In South Carolina, a service member took out a $1,615 loan. The total interest charges? Over $15,000.
These stories of unfair and abusive lending practices that target service men and women are all too common. Payday lenders, car title lenders and other high-cost lenders crowd around military bases and aggressively market to military families.
Once an unaffordable loan is taken, subsequent loans are needed to pay off the previous ones creating a long term cycle of debt. In fact, the Defense Department found that more than one in 10 troops have taken out a high-cost loan.
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CSM Robert Hanks
I can remember them being setup right outside every post I was stationed on. One of the units I was in started to financial counseling for all enlisted Soldiers to include what payday lenders charge you. As leaders we have a responsibility to our younger servicemen to educate them on how to take care of their finances.
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As a military and society in general we need to begin taking some personal responsibility for our actions. Are the actions of these companies terrible? Sure. However, these companies only sue when the purchase contract has been violates. It is our job as officers and senior enlisted to educate junior enlisted and officers on financial responsibility. The Stars and Stripes article highlights a couple who bought well more than they intended... That was their choice and the companies cannot force purchases. A commander's blacklist just shifts responsibility from the individuals and facilitates excessive management over daily lives when more constructive solutions abound.
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MAJ (Join to see)
Capt (Join to see) Soldiers are some of the most easy victims around. 18 yr olds who suddenly have money. Few others meet that demographic.
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LTC Jason Strickland
Capt (Join to see), good points and well written. I think we can all agree that these are exploitative businesses and service members have a responsibility to live within their means.
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Cpl Brett Wagner
These young service members are also trusting of the American public. They are idealistic and often have not had life kick them in the gut enough yet to know better. I grew up in the city and as a typical city person I was suspicious of everyone especially the friendlier ones. In Millington, TN (my first duty station) there was a stripe out side of base with a lot of these Christian welcome centers. Not being a Christian at the time I would go in with some friends and would not accept the cookies or drinks being offered because I thought no one does this free of charge. Turns out I was wrong about some but I never got taken advantage of either. The sad thing there is that you can miss out on some good experiences being too paranoid. ;-)
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Capt (Join to see)
MAJ (Join to see) , I took some time and thought about what you said. Sure, young soldiers are just that... young. And vulnerable. Often naive, immature, and badly in need of education and guidance. There are literally hundreds and thousands of predators out there, from companies like these, to used car sales companies, to any number of others. What happens if we blacklist these couple companies? They close up shop, change their business names and filings, and keep the crappy business model in the same locations with a new title. We can endlessly go in cycles blacklisting but that still does not educate our troops.
The biggest issue I have with your statement is that we can trust these young troops with guns with live ammunition, standing guard at post, deploying and potentially taking lives, spending months away from home, working a command post, or loading live bombs onto a multimillion dollar aircraft... We can teach them all of these things but cannot teach them financial responsibility?
The only way to combat predators is with education. Rather than a set of blacklists over a variety of predators we have the responsibility to train and equip our troops to handle a variety of challenges in life. I would propose a standing order, instruction, or protocol requiring E-3 and below (for example) to run any $500 or more purchases up their chain, or at least to their supervisor, Shirt, or a designated unit financial adviser. That is just one of many possible solutions to educating the youth who suddenly have money for the first time in their lives.
The biggest issue I have with your statement is that we can trust these young troops with guns with live ammunition, standing guard at post, deploying and potentially taking lives, spending months away from home, working a command post, or loading live bombs onto a multimillion dollar aircraft... We can teach them all of these things but cannot teach them financial responsibility?
The only way to combat predators is with education. Rather than a set of blacklists over a variety of predators we have the responsibility to train and equip our troops to handle a variety of challenges in life. I would propose a standing order, instruction, or protocol requiring E-3 and below (for example) to run any $500 or more purchases up their chain, or at least to their supervisor, Shirt, or a designated unit financial adviser. That is just one of many possible solutions to educating the youth who suddenly have money for the first time in their lives.
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USA Discounters Fined, Must Stop Unfair Practices
Stars and Stripes | Aug 15, 2014 | by Patrick Dickson
WASHINGTON -- The Consumer Financial Protection Bureau on Thursday ended a scam run by USA Discounters Ltd., a company that operates a chain of retail stores near military bases and offers financing for purchases, according to a news release.
Full Story: http://www.military.com/money/personal-finance/2014/08/15/usa-discounters-fined-ordered-stop-unfair-sales-practices.html?comp= [login to see] 70&rank=2
Stars and Stripes | Aug 15, 2014 | by Patrick Dickson
WASHINGTON -- The Consumer Financial Protection Bureau on Thursday ended a scam run by USA Discounters Ltd., a company that operates a chain of retail stores near military bases and offers financing for purchases, according to a news release.
Full Story: http://www.military.com/money/personal-finance/2014/08/15/usa-discounters-fined-ordered-stop-unfair-sales-practices.html?comp= [login to see] 70&rank=2
USA Discounters Fined, Must Stop Unfair Practices
The CFPB ended a scam by USA Discounters, a company with a chain of retail stores near bases offering financing for purchases.
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LTC Jason Strickland
CPT Richard Riley, thanks for sharing this. Hopefully we're taking meaningful steps to end the predatory practices on our troops!
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