Consumer advocate, U.S. senator visit Fort Drum Soldiers, Families

FORT DRUM, N.Y. -- Fort Drum Soldiers and Families got a lesson in financial services, consumer laws and education benefits by a top financial protection advocate Friday afternoon at the Commons.

Holly Petraeus, assistant director to the Consumer Financial Protection Bureau's Office of Servicemember Affairs and wife of retired Gen. David Petraeus, CIA director, and U.S. Sen. Kristen Gillibrand (N.Y.) visited Fort Drum to talk about services available to military members and listen to their concerns during a community meeting.

"One of my goals of public service is to actually be a voice for the military," Gillibrand told attendees. "Each time I meet with men and women who have served our nation, I continue to be more and more inspired, not only by your sacrifices and your determination, but by your raw courage -- the courage you show every single day in meeting the missions that are given to you with an exemplary performance."

That is why, she explained, there was a need for the Consumer Financial Protection Bureau -- an agency that emerged because there were no advocacy agencies for consumers.

The CFPB was established to protect consumers from unfair, deceptive or abusive practices of financial services providers such as banks, credit card companies, and mortgage and payday lenders.

Petraeus noted the new federal agency came about in response to the financial meltdown that occurred a few years ago.

In January, she was appointed lead of the bureau's Office of Servicemember Affairs, an office designed to allow military members to focus on their job and Families without having to worry about dealing with abusive financial practices.

"Although there were a lot of consumer laws on the books, there was no one agency that really had the job of looking out for consumers," Petraeus explained to attendees.

The CFPC received 18 different federal consumer financial consumer laws from seven federal agencies.

Active-duty military members and Families, National Guardsmen and Reservists, and retirees and veterans all fall under the Office of Servicemember Affairs.

The office ensures military member and their Families get the financial education they need to make better-informed consumer decisions. Staff members monitor and respond to complaints to the CFPB, and they ensure that federal and state agencies coordinate their activities to improve consumer protection measures for service members.

Issues that have come to Petraeus's attention while visiting other installations include financial issues for military members who own homes, education benefits and avoiding consumer debt.

To help solve these issues, the CFPB has instructed big names, like Fannie Mae and Freddie Mac, to change their guidance to servicers, declaring that a military move is a qualifying hardship. The U.S. Department of Treasury also has tweaked some of its programs, she explained.

"Obviously, the ideal thing would be a big pot of money, but short of that, I will keep raising that it's a big issue for (Soldiers and Families)," Petraeus said.

To address education benefits, the CFPB hopes to make it easier for those who qualify for education benefits to shop around, being able to see a college's track record -- graduation and dropout rates, student loan default rate and accreditation.

Petraeus noted some for-profit colleges market to Soldiers and Families that are "maybe not giving you the best bang for your buck."

"These for-profit colleges know how much (Soldiers) get under (their) GI Bill, (and) they know exactly how to market it to (Soldiers)," Gillibrand explained.

Petraeus noted consumer debt recently affected Fort Drum Soldiers, when a local outfit, Smart Buy, was shut down by the attorney general for selling outrageously priced electronics to Soldiers, and adding high financing on top of the price.

Before service members sign a contract, Petraeus suggested that they read it well and/or take it to the Judge Advocate General office. And those who have had an issue should report it by visiting the website.

"There are a lot of people out there who market to (Soldiers), because (they) can have one of the biggest payrolls in the state when you have a big installation like this, and they want your dollars," Petraeus said.

The bureau also has the ability to supervise financial institutions. For the first time at the federal level, the bureau can supervise nonbanks such as mortgage brokers, private student lenders and credit reporting bureaus.

"Our folks will be able to go in and tell people 'open your books, we want to see what you're doing,' and then possibly make recommendations as to how (they) can do better and if they're breaking the law, then refer it on," she added.

Although the women had a busy day -- with a morning stop in Long Island to speak to National Guard Soldiers, then West Point to talk to cadets, and then spend the afternoon with Fort Drum's Soldiers and Families -- they took time to listen to questions and concerns before heading out.

"I want you to know what we do, but it's also important that I hear from you what your concerns are," Petraeus said.

Attendees raised questions and issues to the panel -- consisting of Petraeus, Gillibrand and Maj. Gen Mark A. Milley, Fort Drum and 10th Mountain Division (LI) commander -- about consolidating student loans and regulating payday lender and loans.

Since July, the bureau has handled about 730 military consumer complaints, and returned more than $130,000 to service members and Families.

"We're just beginning, but I'm happy to see those results already," Petraeus said.

Anyone wishing to file a complaint about a credit card, mortgage or bank account, or for additional information, visit the website, www.consumerfinance.gov.