[Title 32 CFR 513.5]
[Code of Federal Regulations (annual edition) - July 1, 2002 Edition]
[Title 32 - NATIONAL DEFENSE]
[Chapter V - DEPARTMENT OF THE ARMY]
[Subchapter A - AID OF CIVIL AUTHORITIES AND PUBLIC RELATIONS]
[Part 513 - INDEBTEDNESS OF MILITARY PERSONNEL]
[Sec. 513.5 - Procedures governing nonactive duty or discharged personnel.]
[From the U.S. Government Printing Office]
32NATIONAL DEFENSE32002-07-012002-07-01falseProcedures governing nonactive duty or discharged personnel.513.5Sec. 513.5NATIONAL DEFENSEDEPARTMENT OF THE ARMYAID OF CIVIL AUTHORITIES AND PUBLIC RELATIONSINDEBTEDNESS OF MILITARY PERSONNEL
Sec. 513.5 Procedures governing nonactive duty or discharged personnel.
(a) Procedures governing nonactive duty personnel. (1) Debt
complaints against former soldiers or others not on active duty will be
sent to the Commander, U.S. Army Reserve Personnel Center (ARPERCEN),
ATTN: DARP-PSE-VS, 9700 Page Boulevard, St. Louis, MO 63132-5200.
(2) After ARPERCEN verifies the status, the following officials will
act as prescribed below.
(i) Chief, National Guard Bureau, Wash DC 20310-2500, for soldiers
of the Army National Guard.
(ii) The area commander concerned for Ready Reservists assigned to
troop program units under their control. (See AR 140-1, para 1-6.)
(iii) ARPERCEN for nonunit soldiers assigned to Control Groups of
the Ready Reserve, Standby Reserve, and Retired Reserve.
(3) The officials cited in Sec. 513.5(a)(2) will ensure that debt
complaints are delivered to the person concerned, using military
channels. When the complaint cannot be delivered through military
channels, it will be sent to the last known mailing address of the
person by certified mail, using PS Form 3811 (Return Receipt,
Registered, Insured, and Certified Mail). It should be marked Return
Receipt Requested--Deliver to Addressee Only. This form is available at
U.S. post offices.
(4) After delivery of correspondence, the responsible official will
advise the claimant--
(i) Of the date and method of delivery.
(ii) That the military department does not control the personal
affairs of nonactive duty personnel. These personnel usually are in a
civilian status and are not subject to military discipline. Therefore,
the matter has been left to the person's discretion.
(iii) Of the person's mailing address only if the conditions in
Sec. 513.5(c) are met.
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(b) Procedures governing discharged personnel. (1) Debt complaints
against persons who have been discharged from the service (that is,
those now holding no military status) will be sent to ARPERCEN.
(2) ARPERCEN will return the correspondence, and all accompanying
documentation, and advise the claimaint--
(i) That the person is no longer a member of the Army or the Reserve
Components.
(ii) Of the date of discharge.
(iii) That the Army no longer has control or authority over the
discharged personnel. Therefore, the Army can take no further action in
this matter.
(iv) Of the person's mailing address only if the conditions in
Sec. 513.5(c) are met.
(c) Conditions for disclosing mailing address. Nonactive duty and
discharged personnel's mailing addresses will not be disclosed unless--
(1) The person consents in writing to the release of his or her
address.
(2) The claimant sends a court order directing the release of the
address.
(3) Any other reason that does not constitute a violation of the
Privacy Act of 1974.
(d) Retired personnel. (1) The claimant may be advised that
correspondence may be sent to the retired person as follows:
(i) Place correspondence in a stamped envelope with the retired
person's name typed or printed on the envelope.
(ii) Place a stamped envelope in a second envelope and mail to
Commander, ARPERCEN, Attn: DARP-PSE-VS, 9700 Page Boulevard, St. Louis,
MO 63131-5200.
(2) ARPERCEN will forward the correspondence to the retired person,
but cannot release the address per provisions of the Privacy Act of
1974.
Appendix A to Part 513--References
Section I
Required Publications.
AR 340-2
Maintenance and Dispostion of Records in TOE Units of the Active
Army, the Army Reserve and the National Guard. (Cited in
Sec. 513.3(b)(2)).
AR 340-17
Release of Information and Records from Army Files. (Cited in
Sec. 513.2(a)(3)(viii)(H)).
AR 340-18
The Army Functional Files System. (Cited in Sec. 513.3(b)(2)).
AR 340-21
The Army Privacy Program. (Cited in Secs. 513.1(d)(5)(iv) and
513.2(a)(3)(viii)(H)).
AR 600-37
Unfavorable Information. (Cited in Sec. 513.3(b) (2) and (3)).
DA Pam 27-166
Soldiers' and Sailors' Civil Relief Act. (Cited in Sec. 513.4(b)).
DA Pam 360-520
Credit: Master or Servant. (Cited in Secs. 513.2(a)(3)(viii)(G) and
513.4(a)(4)).
Uniform Code of Military Justice. (Cited in Secs. 513.1(e)(7)(iv),
513.2(a)(3)(viii)(D) and 513.3(a)(4)).
Section II
Related Publications.
A related publication is merely a source of additional information.
The user does not have to read it to understand this regulation.
AR 1-9
White House Liaison, Communications, and Inspections.
AR 11-2
Internal Control Systems.
AR 27-3
Legal Assistance.
AR 37-60
Pricing for Materiel and Services.
AR 140-1
USAR--Mission, Organization, and Training.
AR 210-24
Credit Unions.
AR 210-60
Control and Prevention of Abuse of Check Cashing Privileges.
AR 210-135
Banking Service on Army Installations.
AR 601-280
Army Reenlistment Program.
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AR 608-1
Army Community Service Program.
AR 608-99
Family Support, Child Custody, and Paternity.
AR 635-100
Officer Personnel (Separations).
AR 635-200
Enlisted Personnel (Separations).
DODD 1344.9
Indebtedness of Military Personnel.
Federal Reserve Board Regulation Z Truth in Lending.
Section III
Prescribed Forms.
DA Form 4817-R
Consent/Nonconsent to Disclose Personal Information. (Cited in
Secs. 513.2(a)(3)(viii) (A) and (H), and 513.2(d)(4)(iv)).
Section IV
Referenced Forms.
DA Form 209
Delay, Referral, or Follow-Up Notice.
PS Form 3811
Return Receipt, Registered, Insured, and Certified Mail.
Appendix B to Part 513--Standards of Fairness
B-1. No finance charge contracted for, made, or received under any
contract shall be in excess of the charge which could be made for such
contract under the law of the place in which the contract is signed in
the United States by the military member.
a. In the event a contract is signed with a U.S. company in a
foreign country, the lowest interest rate of the State or States in
which the company is chartered or does business shall apply.
b. However, interest rates and service charges applicable to
overseas military banking facilities will be established by the
Department of Defense.
B-2. No contract or loan agreement shall provide for an attorney's
fee in the event of default unless suit is filed, in which event the fee
provided in the contract shall not exceed 20 percent of the obligation
found due. No attorney fees shall be authorized if the attorney is a
salaried employee of the holder.
B-3. In loan transactions, defenses which the debtor may have
against the original lender or its agent shall be good against any
subsequent holder of the obligation. In credit transactions, defenses
against the seller or its agent shall be good against any subsequent
holder of the obligation, provided that the holder had actual knowledge
of the defense or under conditions where reasonable inquiry would have
apprised the holder of this fact.
B-4. The military member shall have the right to remove any security
for the obligation beyond State or national boundaries if the military
member or family moves beyond such boundaries under military orders and
notifies the creditor, in advance of the removal, of the new address
where the security will be located. Removal of the security shall not
accelerate payment of the obligation.
B-5. No late charge shall be made in excess of 5 percent of the late
payment, or $5 whichever is the lesser amount, or as provided by law or
applicable regulatory agency determination. Only one late charge may be
made for any tardy installment. Late charges will not be levied where an
allotment has been timely filed, but payment of the allotment has been
delayed. Late charges by overseas banking facilities are a matter of
contract with the Department of Defense. Late charges by Federal credit
unions are set at 20 percent of the interest due with a minimum of not
less than 5 cents.
B-6. The obligation may be paid in full at any time or through
accelerated payments of any amount. There shall be no penalty for
prepayment and in the event of prepayment that portion of the finance
charges which has inured to the benefit of the seller of the creditor
shall be prorated on the basis of the charges which would have been
ratably payable had finance charges been calculated and payable as equal
periodic payments over the terms of the contract and only the prorated
amount to the date of prepayment shall be due. As an alternative the
``Rule of 78'' may be applied.
B-7. If a charge is made for loan insurance protection, it must be
evidenced by delivery of a policy or certificate of insurance to the
military member within 30 days.
B-8. If the loan or contract agreement provides for payments in
installments, each payment, other than the down payment, shall be in
equal or substantially equal amounts, and installments shall be
successive and of equal or substantially equal duration.
B-9. If the security for the debt is repossessed and sold in order
to satisfy or reduce the debt, the repossession and resale will be
governed by the laws of the State in which the security is requested.
B-10. A contract for personal goods and services may be terminated
at any time before delivery of the goods or services without charge to
the purchaser. However, if goods
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made to the special order of the purchaser result in preproduction
costs, or require preparation for delivery, such additional costs will
be listed in the order form or contract.
a. No termination charge will be made in excess of this amount.
Contracts for delivery at future intervals may be terminated as to the
undelivered portion.
b. The purchaser shall be chargeable only for that proportion of the
total cost which the goods or services delivered bear to the total goods
called for by the contract. (This is in addition to the right to rescind
certain credit transactions involving a security interest in real estate
provided by Pub. L. 90-321, ``Truth-in-Lending Act,'' section 125 (15
U.S.C. 1601 (1976)) and the Federal Reserve Board Regulation Z (12 CFR
part 226 and Secs. 226.3, 226.9 (1978)).
Appendix C to Part 513--Glossary
Section I--Abbreviations
ARNGUS: Army National Guard of the United States
ARPERCEN: U.S. Army Reserve Personnel Center
AUTOVON: automatic voice network
DA: Department of the Army
DOD: Department of Defense
HQDA: Headquarters, Department of the Army
MHD: medical holding detachment
SJA: staff judge advocate
SSN: social security number
UCMJ: Uniform Code of Military Justice
USACFSC: U.S. Army Community and Family Support Center
USAEREC: U.S. Army Enlisted Records and Evaluation Center
USAFAC: U.S. Army Finance and Accounting Center
USAR: U.S. Army Reserve
U.S.C. U.S. Code
Section II--Terms
Check: A written order, usually on a standard printed form, directing a
bank or credit union to pay money.
Creditor: Any person or business that offers or extends credit, or to
whom or to which a debt is owed. This term includes lending institutions
(such as centralized charge systems) which, although not parties to the
original transactions, seek help in collecting debts.
Debt: Any legal debt acknowledged by the soldier, or in which there is
no reasonable dispute as to the facts or law, or which has been reduced
to judgment.
Debt collector: Any person or business that solely collects debts owed
to another person or business. (A debt collector is not a creditor.)
Disputed debt: Any debt, not reduced to a judgment, in which there is a
genuine dispute between the parties as to the facts or law relating to
the debt which would affect the obligation the soldier to pay.
Family member: As used in this regulation, an individual who qualifies
for dependency benefits under certain conditions as set by Army
regulations. (For example, spouse or unmarried child, to include
stepchildren, and adopted or illegitimate children.)
Judgment: Any decision given by a court of justice or other competent
tribunal as a result of proceedings instituted therein. As defined, a
judgment includes any administrative enforcement order
(Vollstreckungsanordnung) issued by the German federal post office
(Deutsche Bundespost) regarding unpaid telephone bills. Such orders come
within the coverage of this regulation regardless of where the soldier
is stationed.
Soldier: Commissioned and warrant officers and enlisted personnel.
[51 FR 7275, Mar. 3, 1986; 51 FR 8824, Mar. 14, 1986]