Office of the Secretary November 28, 2014 – Federal Register Recent Federal Regulation Documents

The Secretary of Defense approved establishment of policy that prohibits the use of discretionary military pay allotments to acquire personal property. His purpose in doing so is to eliminate one mechanism that predatory lenders use to take advantage of service members who finance purchases using the military pay allotment system. To address predatory practices, the changes will prohibit active duty service members from establishing new allotments for the purchase, lease, or rental of vehicles (e.g., an automobile, motorcycle, or boat); appliances or household goods (e.g., a washer, dryer, or furniture); electronics (e.g., a laptop, tablet, cell phone, or television); or other consumer items that are tangible and movable. This change is effective January 1, 2015.