Protecting Your Finances -- Info from the CFPB
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.
The Consumer Finance Protection Bureau offers detailed, user-friendly consumer information for miltiary families on how to protect their finances and how to plan for the future.