Email   Print   Share By Lewis Wald, Asst. IG, III Corps

Facebook Digg Delicious January 28, 2010 | News

Whether you use credit cards, owe money on a loan or are paying off a mortgage, you are a “debtor.” Like most Americans, we use our credit cards to make purchases or take out loans for those things that make our lives more comfortable. However, with this comes the requirement for Soldiers to manage their personal affairs satisfactorily and pay their debts promptly. Failure to do so not only damages your credit reputation, but the Army’s public image as well. What happens when you do not pay your debts and the debt collector comes knocking on your door or calls your commanding officer? What rights do you have and what criteria must the creditor meet before requesting assistance from the Army in collecting the debt?

AR 600-15 (Indebtedness of Military Personnel) prescribes Department of the Army policy, responsibilities, and procedures for handling debt claims against Soldiers. This regulation covers your rights and responsibilities, administrative procedures for processing complaints, administrative and punitive actions that can be taken against Soldiers who fail to pay their debts and conditions creditors must meet before requesting assistance from the Army to resolve unpaid debts.

The Army has no legal authority to force Soldiers to pay their debts. In addition, the Army cannot divert any part of a Soldier’s pay even though payment of the debt was decreed by civil court. Only civil authorities can enforce payment of private debts. The Army does not try to judge, settle disputed debts, or admit or deny whether claims are valid. The Army will not tell claimants whether any adverse action has been taken against a Soldier as a result of the claim. If a Soldier is not trying to resolve unpaid debts promptly or complaints of repeated failure to pay debts are received, AR 600-15 directs commanders to consider the following actions:

(1) Making the failure a matter of personal record.

(2) Denial of re-enlistment (enlisted personnel).

(3) Administrative separation from service.

(4) Punishment under the Uniform Code of Military Justice (UCMJ) under article 92, 123, 133, or 134 of the UCMJ.

When your local Inspector General receives a complaint that a Soldier has failed to pay their debt, we refer the complainant directly to the Soldier’s chain of command for resolution. AR 600-15, paragraph 2-1, lists the actions the commander must take upon receiving a debt complaint. Upon receipt of a debt complaint, the commander will review the case to ensure all of the criteria listed in AR 600-15, paragraph 4-3, have been met by the creditor. Creditors must comply with statutory and other regulatory requirements, to include applicable state laws.

The creditor must also provide a true copy of the signed contract, the general and specific disclosure information given the Soldier before signing the contract, and documentary proof that every effort has been made to get the payment by direct contact with the Soldier.

If the creditor met the requirements as listed in paragraph 4-3 then the commander must interview the Soldier. Some actions the commander is required to take is to ensure the Soldier is properly advised of his or her rights under the Privacy Act of 1974; notify the Soldier of the debt complaint; inform the Soldier of their legal right and duties, to include the right to free legal assistance; to explain that the Army requires Soldiers pay their debts promptly and failure to resolve unpaid debts may result in administrative or punitive actions; to review all available facts including the Soldier’s defenses, rights and counterclaims; and to help the Soldier in settling or liquidating the debt.