Servicemembers, veterans, and their families are an attractive target for both good and bad lenders:
- Many lenders know the UCMJ requires you to maintain good finances.
- You are easy to find, so lenders are confident they can collect debts you owe.
- Your military pay represents a steady income that could be garnished.
- Military families often start young, leading to big money management decisions by first-time decision makers.
Face unique risks:
- Deployments, change of duty stations, and emergencies lead to unplanned and unique financial difficulties without adequate resources to resolve them
- Your loyalty to your service leads marketers to tie their pitches to the military, a strategy called “affinity marketing.”
- Frequent relocation can mean unforeseen expenses and a lack of familiarity with the local environment.
Servicemembers should be able to accomplish their mission without worrying about illegal or harmful financial practices. The Office of Servicemember Affairs is here to ensure that military personnel and their families have a voice at the Consumer Financial Protection Bureau. Military life can have some extra challenges that can sometimes have powerful financial repercussions.