European Stars And Stripes (Newspaper) - February 7, 1978, Darmstadt, Hesse                                The loan rangers by Bob hover staff Urffer lending Money to americana in Europe has always been a highly competitive it still with record Loans now being be Competition is As keen As Ever to Supply till but the players have in the place of Loon Sharks ibo held a lock on the business in the Federal credit unions and military and to a much lesser loan now compete for credit that runs million a year and returns some 125 million in inter est payments to encouraged to open shop in after a congressional probe revealed shoddy practices by finance particularly in credit unions now dominate the it it a fight loot pits the Pentagon Federal credit second largest in he against four credit unions maintaining in Maying an i Between role Are Automo bile sales representatives at military sex officials from credit unions on location in Germany charge that Pentagon credit Union is picking up a Large number of Low risk automobile while they Are writ big High risk signature by Law no credit Union can charge More than 12 and a number of them better the 12 percent rate for automobile i Pentagon attracts new business in Europe by offering lower Rales than sever a other credit unions Are upset be i cause Pentagon writes substantial business in Germany despite having Only one thai at by contrast credit onions in Germany say they Are bound by geographic areas where they can write they accuse Pentagon of pirating their hush there is no question thai Penta gon credit Union is pirating a rival manager last while we til Wiki our they pick up new business at our youll had they get with what there doing became they have pow Erful in High in Thomas Man Ager of finance Center credit Union offices for claims the most glaring inequities cropped up in financing there have been cases where we put up the Money for us Down payment and Pentagon credit Union financed the Tom credit Union officials Are anything but Happy about Bank programs which might eventually erode their life can be a bed of roses when you s3ve at Andrews Federal credit Union poster emphasizes savings aspect of credit although finance Center credit unions share of Auto Loans increased since Tom Kiewicz filed a he says Penta gon continues to write hundreds of car nans in if the customer is already a member of Pentagon credit Union then i dont blame him for taking out a loan with Tomklewicz isaid Bui if he is not a member and is signed up in Germany then this is a violation of the regulations under which we Tomkiewicz puts part of the blame on automobile sales i know they keep Pentagon literature in their desks even though this is a violation of an army As a result Pentagon gets the Cream of Loans and we get stuck with unsecured Peter manager of service credit Union offices in reports he has seen Pentagon credit Union literature in several military this is contrary to Dod he and i u against regulations for Auto dealers to pass out Pentagon literature or that of a credit but it really is impassible to Stop them Tram doing Cumming he saw no harm in dispensing pm Flagon an Auto dealer said he believes in helping his customers get the Best financing Dod As outlined by a military Hanking spokesman in forbids the distribution of Credi Union literature in territory under contract to a Rural despite this policy and reports that Pentagon credit Union officials Are curtailing such Pentagon credit Union Yllera lure continues u show up in areas chartered by other credit theres no doubt Pentagon enjoys a healthy Cut of the Cernan loan Norket comptroller Roger Kase says Pentagon wrote an estimated i in million i new Kara for German based members during the past fiscal by comparison the Taw credit Union onto Mons maintaining offices in Ger Many Nasce Center fort Belvoir and service loaned 112 million in White credit unions vie for loan Cus military banking plans or a bigger Cut of the business Are stir n drafting How big a Dent they will make in the Market remains a matter of John air Force assistant for banking and contract and chair Man of a Bank study is convinced that Banks will not pose a threat to credit Union we want Banks to make Loans where there is a need for Bodie said during a discussion of the new Dod con tract with military banking officials in the main idea is to improve r Joseph chair Man of a House subcommittee on takes a somewhat different the Competition is going to be am convinced the Serviceman is going profit by the Competition Between Ankli facilities and the credit hint told finance still other officials regard the loan pro Gram of Banks As a Way to raise net Money thus reducing the Federal son now standing at 17 million far the Iri year of the new while keeping their fingers crowed credit Union officials Are anything b Happy about Bank programs which eventually erode their dont Welcome the idea of outfits the Banks being compete with a manager Donl see Why they should Tike from nonprofit organizations c unions that were originally asked to to Europe to provide a much needed service for although the new loan policies Hanks must be worked then is a Ylery the activities of syst vate com companies operating Priant Pally do us German even with High interest manage at least 15 per cent of the Man a piece of business that military Bat May eventually try to prior to of the credit local finance companies dominated scene and the sky was the limit on Auto dealer who remembers dancing i Jinks of loan companies Frankfurt said interest rates ran up to it was the High Rales of interest a Alt to the credit unions coming to Europe my Nash t i was part of a group that came Europe to look into these conditions in in those Days a loan company offer a Salesman to 1200 to bring a to Lomer into their said John Rii now an Auto sales rep at Frankfurt there were at least five loan comi Nies in Frankfurt then and it was a s when the credit unions came they drove the finance companies out business and a lot of gangsters Ullh then car dealers in now we have a clean Hilt not necessarily because people want to i but because they have no Othi i Wiful Aimu Lull Kelli nine Federal credit unions maintain Germany Wiesbaden Hanau and Buli Hach flu bit Bure Heidel Stuttgart and West finance Center flu Korth Ansh arh Neu ulna Ansback fort Belvoir ecu Wurzburg and United kingdom Navy office processes accounts that Are Servia at Navy Exchange outlets throughout Bra Italy Fairchild flu Camp Durh Navy flu Naples and Sigondo Spain Pentagon Greece Security service Many service members do i Page a8 the stars and stripes february