[ctwpaints]

We got a letter today from NCO saying they were going to garnish my husbands wages for a debt to aafes stars card that we had back in 2003. He has been out of the army since then and we had a really hard time getting jobs when we got back and are doing OK now but going from paycheck to paycheck and now out of the blue they send this letter saying if they do not hear from us by July 10 th they or get a payment plan that they will put the garnishment in. I work in collections and I know with the company I work for we would do a wage garnishment but it is not this long after the debt. I saw a posting on here for the same thing but the person never said what the result was. NCO is saying we owe 5800.00 and that they would take payments to pay off debt in 12 months- we can't afford that... can anyone help ? Is this company blowing smoke?

[cavscout]

I can't necessarily help but am in the same situation as your husband. I too read the previous post but that person never said what ended up happening. I hate when people do that. I am currently typing a letter to NCO telling them that this debt is way beyond the Statute of Limitations for Louisiana (or any state for that matter) and to cease and desist of all collection activity. I suggest you do the same. I am currently working with a credit repair company and they are advising me on the situation. The only unknown is -- is AAFES enough of a govt agency that they are above the law? I wouldn't doubt it but we will see. I am going to send this certified letter tomorrow.

I would love to know how your situation turns out. If you want to collaborate or anything my email is >Removed<. My situation is almost exactly the same as your except the amount is $3500.

Alan

[Fr_Chuck]

I agree, unless you have been making payments along with them, or unless you have made promises to pay them, the SOL should be long over.

Next unless they sue you, they can't just "garnish" your wages.

Next sorry but if a collection agent has his lips moving, they are most likely lying, most do it to try and get you to commit to paying to restart the SOL, or to get as much money as possible.

Deny owing the debt, request proof of the debt.
Next don't talk to them on the phone, if it is not in writing, it is not real

[stuartcher]

We have same issue, haven't had card since 2002 or 2003 not sure, law says we can't leave post to post without paying debt, I have many time over, all the sudden in last 2 checks they took 1000 dollar, we are a family of 5. Never were we informed of such debt. We are active duty and they say they didn't know address. Then the lady said "we are the goverment we can do what we want!" Help what should we do

[Iknowalotofstuff]

In most jurisdictions, the SOL is 6 years. If the SOL period has expired, it is likely that NCO has purchased the account for pennies on the dollar and is now trying to make a profit.

The last thing you should do is acknowledge the debt either in writing or by making a nominal payment.

The statute of limitations does not cancel a debt. It simply prevents the creditor from using the courts to collect the debt.

Here is the question I would ask NCO only by phone not in writing:
Could you provide me with some written documentation establishing that I am indebted to AAFES STAR CARD and why the debt is not statute barred? Until I am in receipt of information, I take the position that I am not indebted to AAFES and the account is statute barred"

Then stop communicating with them until they provide the information. If they call again, read the above script and hang up. They will eventually give you the information or acknowledge the account is statute barred.

[cavscout]

Okay so here is an update to my previous post. I sent NCO/AAFES basically a C&D and stated that this debt is way beyond statute of limitations. They apparently took this as a request for official review/hearing. A couple of weeks later they sent me some documentation on the debt, basically a ledger of the balance over the years (which has ballooned over the years from interest and fees now about $3,500). The documentation appears correct. Anyway, after a few weeks more I got a letter back from AAFES Hearing Official stating the ruling against me. This ruling states that they are, in fact, exempt from state law because they are a "NON-APPROPRIATED FUND INSTRUMENTALITY OF THE FEDERAL GOVERNMENT (NAFI). They say they are exempt from the statute of limitations and also do not need a judgement to garnish my wages! What a load of !#$%^!!

The applicable law is 31 USC 3717 and 3720D; as well as regulations published at 31 CFR 285.11 according to this document. I received this hearing official's final decision about a month ago. I have not attempted to contact them thus far, however I am now concerned that my wages are going to be garnished for this. It's been so long that it just seems absurd that they would do this after so many years. I am wondering if they are going to follow through with the wage garnishment. But to everyone who is saying, like I was also, that they can't garnish without a judgement or that they can't do anything after the statute of limitations is past... be warned --- this looks legit and I am thinking they are going to go through with it. I will let everyone know if they actually do it or not. If anyone knows anything more please post and let everyone know. Thx

[mrmidnyte]

This is true, don't know for sure about the SOL, but it seems that trhey do not fall under that jurisdication, I've been out of the military for almost 10yrs and they just started garnishing my wages this past pay period. I contacted them after the fact to ask why I wasn't informed that this process was about to take place, they claimed that they sent it to an address that I haven't lived at in over 7 years. I asked how old the debt was that they claimed I owed and they stated that it was from 2001 and this was the year that AAFES actually did a charge off on the account. I hadn't used the card since at least 2000, but they still are garnishing my wages as of now. I don't know what steps to take to fight this, but I would like any information to assist in the process. I also did my own research and found that this is something that's not even on my credit report.

[Renae17]

They can garnish your wages no matter how long it has been. They sent my employer a statement to garnish my wages and my employer started taking 15% of my take home pay from my check as a garnishment to this freaking company (NCO). The garnishment paperwork advised my employer to not stop the garnishment until the stated amount of $4344 was paid in full.

[MBurdette]

My military retirement and social security disability are both being tapped at 15%. DFAS and SS Admin are taking it to pay AAFES on an account from 1992. There is no SOL on a federal (read that AAFES) debt. The interest rate they are charging is absolutely ridiculous. To me it amounts to nothing more than loan sharking; and it is considered a federal agency! I've been paying (read that garnished) $500 a month for the last two years on a $10k debt. I'll be getting a $500 raise once this thing is paid of this year, but the frigging interest is what I don't understand. We didn't get a COLA for either military retirement or SSDI and yet they have no shame charging a ridiculous interest and topping it with an unreasonable collection agency fee!!

[rbgb84]

There is a 10 SOL on aafes. Here is the link http://www.citizen.org/litigation/forms/cases/getlinkforcase.cfm?cID=438. Copy and paste in url. This will bring a class action lawsuit that went through as of Feb 2010. They are not able to collect after 10 years!

Hope that helps

[mayss]

AAFES claims to be a government agency but does not follow the laws the government has passed i.e. the credit laws that were in 2010. But all this complaining being done about AAFES is it really helping. AAFES has messed me over too and I'm not going to take it. Remember the is a US Government agency in other words owned by the people and for the people. Let's stop complaining and seriously attempt to get AAFES collection practices heard on Capital Hill. We are the service members AAFES is there to serve us one AAFES a million other retailers that would love to come and serve the service members. If you are serious about this write you congressman tell you local media and let's put AAFES on front street. If you would like to join me response so we can join and do something about this instead of just "whining and complaining!" We owe AAFES not NCO financial if it's a government debt do we have a right to appeal, or be heard. LET do what we have been trained to do defend ourselves.

[Sarge1148]

Nov. 14, 2007

Government Is Illegally Taking Money From Soldiers and Veterans Who Used Military Credit Cards, Lawsuit Alleges

Public Citizen Files Class Action on Behalf of Soldiers and Veterans Nationwide

WASHINGTON, D.C. – The Army and Air Force Exchange Service (AAFES) is breaking the law by taking money from soldiers and veterans who have military credit card debts that were either improperly calculated, too old to collect or both, Public Citizen said today in a lawsuit filed in the U.S. District Court for the Northern District of California in San Francisco.

Public Citizen, with San Francisco consumer lawyers Chandler Visher and Marie Appel, filed the suit on behalf of veteran Julius Briggs and a class of soldiers and veterans nationwide.

For years, the AAFES has offered credit cards, known as Military Star cards, to military personnel to purchase uniforms and other items from the stores it operates on military bases. If a service member is delinquent in paying a debt, the government has the right to deduct the money owed from the member's government benefits or tax refunds. The government can add interest, penalties and administrative costs as permitted by the credit card contract or federal law.

AAFES, however, is not permitted by law to collect debts that have been outstanding for more than 10 years or amounts in excess of what the contract allows. In improperly collecting these debts, the AAFES has steadily appropriated millions of dollars from soldiers and veterans nationwide, Public Citizen says.

“It is shocking that a U.S. government agency would illegally take this money from veterans who have served our country well, particularly from those veterans who may be depending on government benefits,” said Deepak Gupta, an attorney for Public Citizen who is working on the lawsuit.

Briggs, the plaintiff, is a 21-year veteran of the U.S. Army and Army Reserves with an honorable record. He served in Germany and later in Saudi Arabia in the aftermath of Operation Desert Storm. While on active duty in 1977, he suffered a back injury that has since limited the number and types of jobs he can take.

Since 2004, the U.S. government has withheld more than $2,300 in federal payments to Briggs to pay an AAFES debt that was outstanding more than 10 years. The withheld payments have caused Briggs to be unable to pay his housing costs, leaving him homeless for several periods over the past few years. Not only has the government collected money beyond the time limit, but it also has inflated the amount due through improper interest rate calculations.

“With any luck, this lawsuit will force AAFES to stop collecting money that it has no right to take,” said Briggs.

The lawsuit seeks an injunction against further illegal collection of debts by AAFES and restitution of all funds inappropriately collected.

[usrecon19d]

They have the right legaly to do this collection... I have worked on my own situation for years now since retiring in 2006... they garnished my military dfas account until comlpete... or so I thought... I found out later though when they submit the garnishment to dfas it is only up until that date... it will still accure interest until it is paid off... thus my 2nd garnishment for the unpaid interest whom NCO bought from aafes... called the aafes # (214-465-2261) to try to settle... after I told them my situation and discussed SOL... they said let the first payment go through dfas call aafes # as soon as it credits the account and get their (aafes) payoff then go to the local bx/px and pay the aafes balance this will greatly reduce the fee NCO is charging.
Then fax a letter to aafes debt recovery(1-800-519-3382) asking them to stop any further DD139 action from mypay/dfas account paid in full... include full name account # and ssn in letter. Hope this helps...

[cavscout]

Follow-up: It's been almost two years and have not heard anything else from NCO and no wage garnishment has occurred thus far...

Okay so here is an update to my previous post. I sent NCO/AAFES basically a C&D and stated that this debt is way beyond statute of limitations. They apparently took this as a request for official review/hearing. A couple of weeks later they sent me some documentation on the debt, basically a ledger of the balance over the years (which has ballooned over the years from interest and fees now about $3,500). The documentation appears correct. Anyway, after a few weeks more I got a letter back from AAFES Hearing Official stating the ruling against me. This ruling states that they are, in fact, exempt from state law because they are a "NON-APPROPRIATED FUND INSTRUMENTALITY OF THE FEDERAL GOVERNMENT (NAFI). They say they are exempt from the statute of limitations and also do not need a judgement to garnish my wages! What a load of !#$%^!

The applicable law is 31 USC 3717 and 3720D; as well as regulations published at 31 CFR 285.11 according to this document. I received this hearing official's final decision about a month ago. I have not attempted to contact them thus far, however I am now concerned that my wages are going to be garnished for this. It's been so long that it just seems absurd that they would do this after so many years. I am wondering if they are going to follow through with the wage garnishment. But to everyone who is saying, like I was also, that they can't garnish without a judgement or that they can't do anything after the statute of limitations is past... Be warned --- this looks legit and I am thinking they are going to go through with it. I will let everyone know if they actually do it or not. If anyone knows anything more please post and let everyone know. Thanks

[veroronnie420]

That is not true. They got sued for going over the 10 year SOL and they lost. http://www.citizen.org/litigation/forms/cases/getlinkforcase.cfm?cID=438

[veroronnie420]

Follow-up: It's been almost two years and have not heard anything else from NCO and no wage garnishment has occured thus far...

Yeah, because they got sued and lost.

No one is above the law. All it takes is one person to say, "No, this is not ok, and I will NOT accept this," and MEAN it.

http://www.citizen.org/litigation/forms/cases/getlinkforcase.cfm?cID=438

[whatsittuya]

My husband just got a letter yesterday that they are garnishing his pay, 15%. SImilar situation, AAFES said he bounced a check, but when he called, they have no information on it. When he requested NCO to provide him with documentation, he got a letter stating they were going to look into it. He didn't hear anything for a while until that letter from his employer yesterday about the wage garnishment. Not sure what to do at this point.. help