European Stars And Stripes (Newspaper) - January 6, 1988, Darmstadt, Hesse                                Allotment abuse still rampant a number of lending Zinsli Tulious overseas made use of the miliary aha men system Lor instalment payments an furniture trips cars Loans stereos you name in. This is illegal. Military allotments Are not allowed for consumer credit payments. Allyl meals arc payments from your pay Mads by Federal government Check to a person a institution you designate. They Don l snarl automatically. You must authorize them. The most familiar use of Allol meals is for family support but they can be used Lor other purposes too the department of defense old lists the fallowing authorised uses of allotments they can be made out to financial institutions Lor credit to your account. They can go to us. Government or to commercial tile insurance companies Tor insurance premiums they can be made out to certain military Relief organizations and to the american Rod Cross. They also can be sent to an institution or individual Lor repayment of a loan obtained solely Tor the Purchase or a Home or House trailer. They can be used for the Purchase of . Government savings Bonds and Lor the voluntary liquidation of debt to the United states. Allotments were not set up so that private companies could make use Olathe military finance system to collect payments but that is what has been going on overseas Lor Al least 20 years. Private terms love the allotment system it reduces credit risk and it cuts bookkeeping. In the past a number of firms have oven had the audacity to hand out allotment forms strictly illegal. How do these private companies get away with it ii is Tricky. The military person can make out allotments to have Money put into a savings institution in his name. The loan companies attach a Lineol credit to die account. Often enough under these arrangements the military person does not even receive a Bank Book Check Book or monthly Bank statement. Worst of All. According to army Community service acs financial Counselor Many such accounts Are open accounts which allow a Bank to continue transferring Money to a commercial firm even though the loan has been paid. Wien this happens it s up to Tho military person to iry to get Back his overpayment and that can be Tough acs financial Counselor have reported thai alien they can t get answers to their tetters about the stale of an account. A department of defense Booklet tilled credit. Master or servant gives this advice it any merchant or Lender hands you an allotment form and suggests that an allotment is the Way to repay you should recognize right away that Sci Nething is wrong. Take the allotment form and the contract you have been offered to your Legal assistance  before entering into any allotment arrangement possibly related to consumer credit you should have a Legal expert Check the arrangement very carefully gel advice from those professionally trained to understand the kind of arrangement being offered to you advises the Dod Booklet. My checking out the paycheck Ai re you receiving the Correct amount of learning a Young army nurse did t discover shews being shortchanged until she was promoted irom e-5 to e 6. The paperwork was Serai Gwyned out. She was delighted when she was Given All thai Back  before that Happy Day however there had been a bitter year of struggle. A single Mother she had been forced to hold two jobs to make ends meet. Such paycheck snafus can happen. That s Why it i3 important to Check your leave Arij earnings statement Les carefully. Army Community service acs Ollices report that All too olten people do not know How to read these forms. Many acs Olliges now Olfer classes in How to read earnings statements along Wim classes in budgeting and Check maintenance. All acs financial officers can advise on How to read your statement if you Aro in double. Everyone should be sure Hal the social Security number and rank listed in the Les Are Correct. All  residing overseas Are entitled to Cost of living allowance cola. Rales depend upon whether they Are with or without dependents of live in the Barracks. Be sure cola is listed. The rate payable is determined by the specific location of the duty station As Well As the. Stalus of dependents. It is noted in the remarks Section of the form there is a space in which allotment collections Are listed and another for other  the Tatlor lists debt payments that have been deducted ram your Check. These can include deductions for pay advances dishonoured checks uniforms and collection of cafes deferred payment plan App debt. The Bank where your Check has been sent also is listed Here along with your Lour election with or without dependents other important things to Check Lor Are bad a Money Lor living Oil pos sep rats food Money and via variable housing allowance. If you do not believe you Are receiving Tho Correct amount of Money of question any entry on Yout statement go immediately to your personnel and administration Center. . Money making How americans spend Money housing nondurable durable goods savings 3% interest 2.9%   it pm tag of a poum pin Oral Jocom -10 is m 65 70 78 bobs january6,1988 the stars and stripes Page 1s