Military Consumer Helping Our Military Patrons (and Families) Outsmart the Scammers and Fraudsters Carol Kando-Pineda Federal Trade Commission 1
Military Consumer What is Military Consumer? Some key issues for servicemembers and military families 2
Military Consumer why it matters Studies show that, on average, military families have higher amounts of debt and fewer assets than civilians Challenges of military life can affect servicemembers finances: o Frequent transition and changes o Many servicemembers have little financial experience o Decisions have long-term effects Getting the know-how is key to making smart financial decisions 3
Military Consumer what is it? ofederal Trade Commission and Department of Defense orevamped mobile-first site oshort tips to use on the go oslides and talking points to use in your presentations 4
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How to use Military Consumer In meetings o Use the slides in presentations to units, at family readiness group meetings, and other gatherings. o Access the tips on your mobile device during one-on-one discussions. o Order FTC s print materials to share at workshops prepare troops and their families for military lifecycle changes (basic training, deployment, discharge, etc). FTC.gov/bulkorder 7
How to use Military Consumer Spreading the word o Cut and paste articles & blog posts to your websites. Use as-is or edit them. o Share tips on social media with servicemembers, spouses, and financial counselors in your programs with groups that engage servicemembers such as Morale, Welfare, and Recreation (MWR) or Fleet and Family Support Centers. o Encourage servicemembers to share the information with their peers, commanders, and subordinates. 8
Some issues for military consumers Connect with PFMs and legal assistance. Buying a car Choosing -- and paying for school Job hunting scams, being your own boss, multilevel marketing Ways to avoid scams 9
Personal Financial Managers (PFMs) PFMs provide o Confidential help o Counseling o Free classes o Emergency financial help o Free FICO credit score To find a PFM o Visit MilitaryInstallations.dod.mil and select Personal Financial Management Services o Call Military OneSource at 1-800-342-9647 10
Legal Assistance Offices Gives you free legal counsel Servicemember Civil Relief Act o Gives you reduced interest rates o Can postpone negative actions o Lets you terminate contracts or leases o Protects your life insurance To find legal assistance o Visit MilitaryInstallations.dod.mil and select Legal Services/JAG 11
Buying a Car Research o Decide what you can afford o Determine worth of your current car o Decide how you will pay o Do research before financing Shop o Choose the car and comparison shop Buy o Go to a dealer at the end of the month o Focus on the out the door price o Watch for add-ons or extra fees o Lock in the total price first o Remember you can walk away 12
Buying a Used Car Find a car o Decide what you can afford o Decide how you will pay o Do research before financing o Shop around Check it out o Test-drive o Maintenance record o Warranty o Inspection o Car history Buy and enjoy (or walk away) 13
Used Car Buyers Guide and Warranties Save you money and headaches Buyers Guide tells you if the car: o Is sold as-is o Is sold with an implied warranty o Has a warranty and if it s full or partial o Is under the manufacturer s warranty o Has a service contract available Compare and negotiate Ask for and keep documents 14
Choosing a College or Technical School Research o What type of education do you need? o What kind of school offers those courses? o Use GI Bill Comparison Tool - Vets.gov/gi-bill-comparison-tool Experience the school Get credit for your training Review enrollment contract 15
Paying for Your Education While in the service o Tuition Assistance o TA Decide - Dodmou.com/TADECIDE o Voluntary Education Programs o GI Bills As you leave the service o Transition Assistance Program o State veterans benefits o VA s GI Bill Comparison Tool Vets.gov/gi-bill-comparison-tool o Scholarship info on Military OneSource 16
Paying for Your Education Student loan basics o Supplement GI Bill benefits o Lifetime cap o Must repay even if you don t finish o Federal loans: better rates than private loans o StudentAid.gov Before you commit o What s the interest rate and the total cost? o When repayment begin and how often will you pay? o How long do you have to repay? 17
Getting a High School Equivalency Diploma Online diploma tests are scams Legitimate tests o Four options o In-person, supervised Find out more o Check out your state s department of education o Community colleges Other options o Taking classes o National External Diploma Program 18
Avoiding Job Hunting Scams To find a job o Military job fairs o Feds Hire Vets FedsHireVets.gov o CareerOneStop CareerOneStop.org o USA Jobs USAjobs.gov o Installation education office Using a job search service o No legitimate company will charge you to guarantee a job o Get promises in writing o Insist on paperwork in advance o Check out any jobs they find 19
Being Your Own Boss in a Franchise Do your homework o How long is the agreement? o Do your skills align? o Will you achieve your goals? Get advice o Talk to a lawyer and accountant Review your paperwork o Should receive a Franchise Disclosure Document o Review state laws 20
Multilevel Marketing Know the difference o Multilevel marketing o Pyramid scheme Do your research o Get details in writing o Talk to distributors o Search online o Look for signs: Do distributors sell most of their product to other distributors? Do they make money from recruiting others? 21
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Ways to Avoid Scams Beware of people or companies that: o Ask for money, personal info o Use recorded sales pitches o Request payment via wire services, reloadable cards o Ask you to deposit a check, wire money back Stop and check it out o Search online o Talk to someone you trust The FTC can help o Free scam alerts from Military Consumer: FTC.gov/subscribe o Report scams FTC.gov/complaint 23
Monitoring Your Credit Reports Keep an eye on your credit oget your report AnnualCreditReport.com ouse active duty alerts oreview your statements oopm data breach: check for eligibility 24
Seeing Through Imposter Scams Imposter scams o Appear to come from someone you know o Pressure you to send money quickly Common versions o Distressed friend/family in need o IRS call o Free money from government o Computer virus alert o Online dating interest requesting money 25
Stay in touch! Get scam alerts at www.ftc.gov/subscribe Follow us @MilConsumer 26
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