inquiry. (Forty-five days for those in the contiguous 48 States and the District of Columbia; 60 days for all others.) (11) The claimant is a debt collector without a court order or a signed letter of consent by the soldier. (See §513.1(g).) (12) The debt is covered by an order of a bankruptcy court. (e) Cancellation of debt processing privilege. (1) Creditors who refuse or fail repeatedly to follow these terms will be referred through channels to the Commander, USACFSC, Attn: DACFIS-PA, Alex, Va 22331-0522, by the commander. (2) The CG, USACFSC will (i) Cancel debt processing privileges if the queries clearly show that the creditor is (A) Not conforming with this regulation. (B) Trying to make unreasonable use of the debt processing privilege. (C) Trying to use the Army as a collection agency. (ii) Inform commanders worldwide by electrical message that the debt processing privilege of a specific creditor has been revoked. (iii) Inform the creditor that his or her debt processing privilege has been revoked and state the reasons for this action. (f) Exemptions from Full Disclosure and Standards of Fairness. The debt complaints discussed below are exempt from the Full Disclosure and Standards of Fairness. This does not prevent the debtor from questioning service charges and negotiating a fair and reasonable settlement. (1) Claims from private parties selling personal items (for example, car, furniture, appliances) on a one-time basis. (2) Claims from companies or individuals giving services in which credit is given only to help the soldier (for example, utilities, milk, laundry, medical, and related services). (3) Claims by endorsers, comakers, or lenders who intend only to help the soldier in getting credit. These claims, however, may not benefit the above through receipt of interest or otherwise. (4) Contract for the purchase, sale, or rental of real estate. (5) Claims in which the total unpaid amount does not exceed $50. (6) Claims based on a revolving or open-end credit account. The account must show (i) The periodic interest rate and the equivalent annual rate. (ii) The balance to which the interest is applied to compute the charge. (7) Claims as security liens on real property (for example, a house). This does not include improvements or repairs. (8) Attorneys representing parties under §513.4(f) (1) through (7). $513.5 Procedures governing nonactive duty or discharged personnel. (a) Procedures governing nonactive duty personnel. (1) Debt complaints against former soldiers or others not on active duty will be sent to the Commander, U.S. Army Reserve Personnel Center (ARPERCEN), ATTN: DARPPSE-VS, 9700 Page Boulevard, St. Louis, MO 63132-5200. (2) After ARPERCEN verifies the status, the following officials will act as prescribed below. (i) Chief, National Guard Bureau, Wash DC 20310-2500, for soldiers of the Army National Guard. (ii) The area commander concerned for Ready Reservists assigned to troop program units under their control. (See AR 140-1, para 1-6.) (iii) ARPERCEN for nonunit soldiers assigned to Control Groups of the Ready Reserve, Standby Reserve, and Retired Reserve. (3) The officials cited in §513.5(a)(2) will ensure that debt complaints are delivered to the person concerned, using military channels. When the complaint cannot be delivered through military channels, it will be sent to the last known mailing address of the person by certified mail, using PS Form 3811 (Return Receipt, Registered, Insured, and Certified Mail). It should be marked Return Receipt Requested-Deliver to Addressee Only. This form is available at U.S. post offices. (4) After delivery of correspondence, the responsible official will advise the claimant (i) of the date and method of delivery. (ii) That the military department does not control the personal affairs of nonactive duty personnel. These personnel usually are in a civilian status and are not subject to military discipline. Therefore, the matter has been left to the person's discretion. (iii) of the person's mailing address only if the conditions in §513.5(c) are met. (b) Procedures governing discharged personnel. (1) Debt complaints against persons who have been discharged from the service (that is, those now holding no military status) will be sent to ARPERCEN. (2) ARPERCEN will return the correspondence, and all accompanying documentation, and advise the claimaint (i) That the person is no longer a member of the Army or the Reserve Components. (ii) of the date of discharge. (iii) That the Army no longer has control or authority over the discharged personnel. Therefore, the Army can take no further action in this matter. (iv) of the person's mailing address only if the conditions in §513.5(c) are met. (c) Conditions for disclosing mailing address. Nonactive duty and discharged personnel's mailing addresses will not be disclosed unless (1) The person consents in writing to the release of his or her address. (2) The claimant sends a court order directing the release of the address. (3) Any other reason that does not constitute a violation of the Privacy Act of 1974. (d) Retired personnel. (1) The claimant may be advised that correspondence may be sent to the retired person as follows: (i) Place correspondence in a stamped envelope with the retired person's name typed or printed on the envelope. (ii) Place a stamped envelope in a second envelope and mail to Commander, ARPERCEN, Attn: DARPPSE-VS, 9700 Page Boulevard, St. Louis, MO 63131-5200. (2) ARPERCEN will forward the correspondence to the retired person, but contract is signed in the United States by the military member. a. In the event a contract is signed with a U.S. company in a foreign country, the lowest interest rate of the State or States in which the company is chartered or does business shall apply. b. However, interest rates and service charges applicable to overseas military banking facilities will be established by the Department of Defense. B-2. No contract or loan agreement shall provide for an attorney's fee in the event of default unless suit is filed, in which event the fee provided in the contract shall not exceed 20 percent of the obligation found due. No attorney fees shall be authorized if the attorney is a salaried employee of the holder. B-3. In loan transactions, defenses which the debtor may have against the original lender or its agent shall be good against any subsequent holder of the obligation. In credit transactions, defenses against the seller or its agent shall be good against any subsequent holder of the obligation, provided that the holder had actual knowledge of the defense or under conditions where reasonable inquiry would have apprised the holder of this fact. B-4. The military member shall have the right to remove any security for the obligation beyond State or national boundaries if the military member or family moves beyond such boundaries under military orders and notifies the creditor, in advance of the removal, of the new address where the security will be located. Removal of the security shall not accelerate payment of the obligation. B-5. No late charge shall be made in excess of 5 percent of the late payment, or $5 whichever is the lesser amount, or as provided by law or applicable regulatory agency determination. Only one late charge may be made for any tardy installment. Late charges will not be levied where an allotment has been timely filed, but payment of the allotment has been delayed. Late charges by overseas banking facilities are a matter of contract with the Department of Defense. Late charges by Federal credit unions are set at 20 percent of the interest due with a minimum of not less than 5 cents. B-6. The obligation may be paid in full at any time or through accelerated payments of any amount. There shall be no penalty for prepayment and in the event of prepayment that portion of the finance charges which has inured to the benefit of the seller of the creditor shall be prorated on the basis of the charges which would have been ratably payable had finance charges been calculated and payable as equal periodic payments over the terms of the contract and only the prorated amount to the date of prepayment shall be due. As an alternative the "Rule of 78" may be applied. B-7. If a charge is made for loan insurance protection, it must be evidenced by delivery of a policy or certificate of insurance to the military member within 30 days. B-8. If the loan or contract agreement provides for payments in installments, each payment, other than the down payment, shall be in equal or substantially equal amounts, and installments shall be successive and of equal or substantially equal duration. B-9. If the security for the debt is repossessed and sold in order to satisfy or reduce the debt, the repossession and resale will be governed by the laws of the State in which the security is requested. B-10. A contract for personal goods and services may be terminated at any time before delivery of the goods or services without charge to the purchaser. However, if goods made to the special order of the purchaser result in preproduction costs, or require preparation for delivery, such additional costs will be listed in the order form or contract. a. No termination charge will be made in excess of this amount. Contracts for delivery at future intervals may be terminated as to the undelivered portion. b. The purchaser shall be chargeable only for that proportion of the total cost which the goods or services delivered bear to the total goods called for by the contract. (This is in addition to the right to rescind certain credit transactions involving a security interest in real estate provided by Pub. L. 90-321, "Truth-in-Lending Act," section 125 (15 U.S.C. 1601 (1976)) and the Fed eral Reserve Board Regulation Z (12 CFR part 226 and §§ 226.3, 226.9 (1978)). APPENDIX C TO PART 513-GLOSSARY Section I-Abbreviations ARNGUS: Army National Guard of the United States ARPERCEN: U.S. Army Reserve Personnel AUTOVON: automatic voice network HQDA: Headquarters, Department of the MHD: medical holding detachment SSN: social security number UCMJ: Uniform Code of Military Justice USACFSC: U.S. Army Community and Family Support Center USAEREC: U.S. Army Enlisted Records and Evaluation Center USAFAC: U.S. Army Finance and Accounting Center USAR: U.S. Army Reserve Section II-Terms Check: A written order, usually on a standard printed form, directing a bank or credit union to pay money. Creditor: Any person or business that offers or extends credit, or to whom or to which a debt is owed. This term includes lending institutions (such as centralized charge systems) which, although not parties to the original transactions, seek help in collecting debts. Debt: Any legal debt acknowledged by the soldier, or in which there is no reasonable dispute as to the facts or law, or which has been reduced to judgment. Debt collector: Any person or business that solely collects debts owed to another person or business. (A debt collector is not a creditor.) Disputed debt: Any debt, not reduced to a judgment, in which there is a genuine dispute between the parties as to the facts or law relating to the debt which would affect the obligation the soldier to pay. Family member: As used in this regulation, an individual who qualifies for dependency benefits under certain conditions as set by Army regulations. (For example, spouse or unmarried child, to include stepchildren, and adopted or illegitimate children.) Judgment: Any decision given by a court of justice or other competent tribunal as a result of proceedings instituted therein. As defined, a judgment includes any administrative enforcement order (Vollstreckungsanordnung) issued by the German federal post office (Deutsche Bundespost) regarding unpaid telephone |