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  1. #1
    Join Date
    Jan 2010
    Posts
    3

    Angry AAFES Debt Collection

    My question involves collection proceedings with the US Federal Government.

    Background : I was short notice honorably discharged from the military involuntarily on 15 May 2009. At this time I notified AAFES in writing through to take the amount of my debt from my final military paycheck. I used to work in Finance so I know that they can do this and also that it is their policy to do this with delinquent debts. The AAFES representative signed that she understood the procedure to send the debt to the Finance office within one business day to be collected from my final paycheck. Although I know (because I preach it) that I should have been reviewing my LES more closely, I didn't because I was scrambling to find a new job and once a position opened I had to scramble to get my entire life packed and moved in one weekend 800 miles away. On an invol separation I should have been entitled to 1/2 separation pay in the approx amount of $7500.00 minus taxes etc + my normal pay and the leave sell so my final paycheck on 5/6 June should have been approx $10,000. When it was deposited at around $3000 I just figured that the debt (Approx $7800) was cleared. I come to find out that entitlement to separation pay occurs after you've obtained 6 years in service (something I may have read but didn't realize at the time I read it). I only had 5y11m2w of service so I did not qualify.

    In July 2009 I was notified by my old 1stSgt that the commander had received a letter stating I was overdue on my bill. This tells me 2 things, 1 is that the debt wasn't paid and 2 is that the technician never even entered my information into the system notifying HQ AAFES of my separation. I called AAFES immediately to see what it going on only to find out that my original debt is now nearly $500 more due to late fees, delinquent fees, admin fees, etc. At that time I requested information on the debt and also that it be reduced due to it being of minimal fault of my own. Longer story short I had to send them my backup paperwork and new address 4 or 5 times until October when they finally stopped "loosing" it.

    In September 2009 I did start making payments in the amount of approx $600 a month (this was my original debt divided by 12 months). Now because I missed 1 payment my debt has been transferred to NCO Financial even though I still have not received an answer to my dispute claim through AAFES. I do not mind paying the debt, it's my debt but for them to continually tack on these "admin fees" and now an additional $1600 from NCO Financial for their fees is ridiculous.

    I've searched through the forums for similar cases but could only find ones where people are disputing the 10 year law. Is anyone having a similar issue with AAFES or does anyone know what I can do to make them fix my credit report and reimburse the erroneous wages? I am normally a very understanding and patient person (you have to be in Finance Customer Service) but I am now beyond frustrated and pissed off . I know a lot of the figures above don't add up but they are just approximate. Thank you for your time.

  2. #2
    Join Date
    Sep 2005
    Location
    Behind a Desk
    Posts
    98,846

    Default Re: AAFES Debt Collection

    You were delinquent on your debt. Minimal fault or no, your delinquencies can end up on your credit report.

    When you say your debt has been "transferred" to NCO financial, do you mean that they purchased your debt or that they're acting as a debt collector? Did you dispute the total amount they were claiming you owed? Within thirty days of the first notice? (I suspect that they will verify the amounts claimed.) Have you tried to negotiate a pay-off?

  3. #3
    Join Date
    Jan 2010
    Posts
    3

    Default Re: AAFES Debt Collection

    Thank you for your reply...

    They already agreed to correct my credit score, they just haven't done it yet and I believe that NCO Financial purchased the debt. I haven't gotten any written information from NCO yet just calls that I don't answer because I the number is always different and I don't recognize them. All I have is the debt letter AAFES sent me back in September stating that if I take no action collection will be sent to NCO Financial. I chose one of the options which was to dispute the amount.

    I haven't negotiated a payoff because AAFES told me that the payments I was making ($600 per month) were fine while my account was in dispute.

  4. #4
    Join Date
    Feb 2010
    Posts
    1

    Default Re: AAFES Debt Collection

    i got out July 2001 with debt owed. this was around the time it went from aafes to mil-star (something like that). i had a total debt owed of $4100 as of 2001. as of 2008 all debt was paid and i have docuentation showing a $0 balance. i just found out a few hours ago that they just took $5600+ out of my tax return. it's quite possible if i was face to face with a big wig in charge of this group that i'd be in jail for beating someone senseless. the more i think about it the more pissed off i get. and good luck suing a government agency.....i don't think it's possible. FFFFFFUUUUUUU******KKKKKKKKK!!!!!!!!!!!!!!!!!!!!!! !!!!!!!!!!!!!!!!!

    that's the f**king governement for you. or maybe it's global warming that caused this....

    we need jason bourne to go talk to these clowns.......

  5. #5
    Join Date
    Jan 2010
    Posts
    3

    Default Re: AAFES Debt Collection

    Mr Knowitall thank you for your assistance. I have concluded my issue with AAFES and they cleared my account of the erroneous charges and have updated my report with the correct information. Have a great day.

    eyeculookn sorry to hear about your situation...AAFES can be very difficult to deal with. I honestly suggesting you put in an IG complaint. It may speed up resolution to your issue.

    http://www.aafes.com/inspector_gen/ContactIG.htm

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