WASHINGTON, Nov. 21, 2014 – Defense Secretary Chuck Hagel has directed a policy change in new paycheck allotments to prevent unscrupulous commercial lenders from taking advantage of troops and their families, Pentagon officials said today.
According to a Defense Department news release published today, effective Jan. 1, 2015, the change in DoD’s Financial Management Regulation will prohibit service members from allotting pay to buy, lease or rent personal property, a senior DoD official said.
Improving Protection for Service Members
According to the release, this policy change will eliminate that aspect of the allotment system most prone to abuse by unscrupulous lenders that prey on service members.
This will significantly improve protections for all service members and their families, while not significantly reducing the flexibility to use allotments for a number of legitimate purposes, the release reported.
New Allotment Changes
DoD officials said that while existing allotments are not affected, service members will no longer be able to make allotments for the following types of purchases: READ MORE on Defense.gov…