European Stars and Stripes (Newspaper) - October 03, 1985, Darmstadt, Hesse Page 2 the stars and stripes thursday october 3, 1985credit Union allegedly violating regulations accused of advertising in overseas competitors in cos of membership by Bob hover stiff writer the department of defense is looking into allegations that Pentagon Federal credit Union is distributing advertising literature in the territory of its overseas rivals. Acting on complaints of three credit unions serving military clients in Ger Many the department has Given the credit Union until the end of october to conduct its own investigation. The distribution of such material in the territory of another credit Union is a Clear violation of Dod and separate serv ice regulations a department official said. Initially the order to desist from such distributions set a sept. 15 deadline but Pentagon credit Union requested an Exten Sion so that it could investigate the matter and we agreed to their a pfc official in Arlington va., Home office of the nation s second largest credit Union confirmed receipt of the de Sist order and the Extension. The territorial dispute focuses on the huge credit Market in Europe where seven Federal credit unions provide most of the credit needs for the military Community. From overseas offices they finance everything from automobiles electronic gear and furniture to vacations College tuition Sand air fares Back Home. With the Strong Dollar boosting buying Power credit unions serving european clients have been busier than Ever during the past 18 months. In 1984, they put up a record $300 Mil lion just to finance new cars. Since coming to Europe in 1968 at the urging of Congress and the defense department credit unions have become the primary source of credit for military Bor rowers. By replacing crooked loan opera ton exposed in congressional hearings they added stability to a Market that had been bilking millions of dollars from i creditors. But while performing a needed service for their clients credit unions have had their differences in particular Over the territorial or Field of membership Issue. Managers of the three credit unions serving the most populous troop areas of Germany say they were required to open full service offices in specific geographic areas As a condition of operating in Europe. We provide full service at 20 locations. We be made substantial investments in time and people said Ben Russ overseas manager for finance cd Nice Federal credit Union in Augsburg Germany. While smaller credit unions claim specific Fields of membership pfc official shave always argued that their charter gives them the right to operate every where. Pfc services most of its euro Pean clients from an office in Bremerhaven at least a decade the territorial Issue has been a Bone of Contention. When credit Union officials got together at euro Pean regional meetings the Issue usually surfaced in private discussions. But for the most part grievances were kept under wraps. At changed this summer when pfc an overseas military sales group of , agreed to expedite car Loans with facsimile transmitters at military Exchange outlets in the territory of other credit unions. In separate complaints filed with the department of defense Andrews Federal credit Union of Frankfurt service Feder Al credit Union of Kaiserslautern and finance Center claimed Field of membership violations and challenged the credibility of the automated loan program. After reviewing the protests the de sense department referred the Field of Mcm Barship and loan policy questions to the National credit Union administration the enforcement body responsible for such matters. The Agency turned Down the protest on both counts. In its reply it gave pfc a clean Bill of health saying that no Law or regulation had been violated. That leaves the distribution of Litera Ture As the remaining Issue and we expect u reply from pfc on our desist order before he end of the defense spokesman said. Our main concern is How credit unions service military personnel on Dod install while officials from the three credit unions in Germany await the last won on the literature Issue they Are edgy about the recent decision of pfc to place col lectors in what they regard As their Geo graphic areas. Will these collectors also be doing Loans asks Harold Dorschnor overseas manager for Andrews Federal credit Union. We know from local advertisements that pfc is Selling repossessed can fro lots in our areas. Will they be financing these cars what do these repossessions say about their loan policy in Arlington the pfc official who confirmed receipt of the desist order said a High volume of Loans in the past year made it necessary to put people in the Field to act strictly As collectors. Military Roundup Stuttgart Soldier cited for finding firebombs Stuttgart the Soldier who discovered three firebombs near the army Hospital in bad Cannstatt sept. 9 was awarded the army commendation medal tuesday a Hospital spokeswoman said. The award went to Sec. Manley r. Williams the Security noncommissioned officer in charge of the Hospital s plans operations and training division. After discovering the first bomb he searched and found two More the spokeswoman said. The award was presented by u. Jarrett Clinton Deputy assistant Secretary of defense for profession Al affairs and Quality Assurance. Clinton is touring some american hospitals in Europe looking int credentials Quality control and drug and alcohol abuse Manors the spokeswoman said. Explosives experts defused the bombs in the hos Pital motor Pool after they were found. The bombs consisted of full gasoline cans equipped with timing devices. The Frankfurter Mundschau newspaper received three Page letter signed by a group affiliated with the leftist red army faction claiming responsibility for the attempted firebombing. Brig. Gen. Ross Crossley to assume v corps Post Frankfurt Brig. Gen. Ross w. Crossley will become v corps chief of staff late this month replacing the retiring Brig. Gen. Cecil n. Needy. Corps spokesman said. Crouley who is now the commander of v corps ally will be replaced by col. Fred f. Marty who u the chief of staff at the us. Army combined arms Center fort Leavenworth Kan. Marty will be promoted to brigadier general before assuming his new assignment in november. Neely will retire in Madiso Vilk Texas with his wife Lynn. He has served on Active duty for 28 years and has been v corps chief of staff since september Crowley has commanded the v Corn arty since october 1983. Quick car loan approval plan draws complaints from rivals poisonous mushrooms kill 5 chill Ron Belgrade Yugoslavia a five child in in Coral Yugoslavia have died after eating poit Camus Mush rooms the pol Tiki newspaper reported. Poor of the children belonged to a single family and died in the Hospital. Their Mother was also poisoned and was in critical condition. By Bob hover staff writer a plan that is speeding the approval of Auto Loans for military buyers in the highly competitive overseas car Market has heated up old rivalries. Launched by Pentagon Federal credit Union and Over seas military sales group of Frankfurt the plan has resulted in approval of some Loans in a matter of minutes. Under the plan Loans arc being Practised for Chrysler american motors and Volkswagen of America buyers by facsimile transmitters at major military Exchange car sales outlets. Pentagon credit Union and overseas military sales group officials say the program dubbed Auto malic loan credit Union officials and car dealers excluded from the plan say it has divided the Market into opposing Camps and Given the credit Union and overseas military sales group a competitive Edge. What you see is a Market of haves and have not those who have Access to the plan and those who be Bee excluded one dealer said. Scoffing at the plan a second dealer said his custom ers Don t mind waiting a Day or a week to get credit approval. What s the big Deal about waiting a few Days for credit if you re spending $10,000 to j 15,000 for a car you intend to own three to five years he asked. In launching the program. Pentagon Federal credit Union president Vernon Dwyer described it As the first in a series of moves to improve service for overseas clients. In the past we have attempted to answer All loan requests within 24 hours Dwyer said. Now we Are setting up a system that will generate decision in most cases within an As a contract requirement Dwyer said overseas Mil itary sales group put up escrow Money to protect the military consumer and the credit Union. Rival credit unions say the plan violates their Fields of membership which were established at the time the opened their european offices. Y and along with Auto dealers excluded from the plan they ask Bow u is possible to do a credit Check on Fri applicant in a matter of minutes. In i of course this program really gives oms an and motor of know what will happen As far As g m is Jack Lagg chief of military sales at overseas military sales group says the plan has eased paperwork for sales personnel and customers buying american cars. But Legg denied that it is lilting business to Pentagon at the expense of other credit unions. I would say that Andrews Federal credit Union does the bulk of our financing in the Frankfurt area because this is their european Headquarters Legg said. In Northern Italy i would estimate that 90 percent of our sales Are financed by Fairchild Federal credit Union. And i think the same percentage holds True for Keesler Federal credit Union in the United kingdom. Whoever does the financing it is for the Benefit of the customer. My sales people Don t Mac one Penny i Nancg. I Tell them we Don t care who does the financing. So it s unadulterated if someone says we Are now we Are setting up a system that will generate a decision in most eases within an _ pfc Vernon Dwyer pushing a particular credit Union. If a buyer is a member of a credit Union then the financing must be done through that credit despite such assurances Andrews Federal credit constr a ". I be seen Loans a. A / my icy can t do much checking a two 3%�� l3s��ie$ redi uni offi Cinis dealers in West Ger 1 mra Redit Union offi � loan meeting we a i condition of alter ant one. It s a program that costs quite a bit of Money so i Don t i survive 8 in Market Marvive. And maybe can Bel i
