[Congressional Record Volume 150, Number 126 (Thursday, October 7, 2004)]
[Extensions of Remarks]
[Page E1831]
From the Congressional Record Online through the Government Publishing Office [www.gpo.gov]




          MILITARY PERSONNEL FINANCIAL SERVICES PROTECTION ACT

                                 ______
                                 

                               speech of

                        HON. CAROLYN B. MALONEY

                              of new york

                    in the house of representatives

                        Tuesday, October 5, 2004

  Mrs. MALONEY. Mr. Speaker, I rise in support of H.R. 5011, a bill to 
correct abusive practices in the sale of financial products to our 
military.
  This bill was strongly supported by myself and all my colleagues on 
the Financial Services Committee because it provides a necessary 
correction to a real problem.
  Over the past several years, we have seen the growth of unprincipled 
sales practices pushing marginal financial products, blatantly 
unsuitable for military personnel.
  These contractual plans impose staggering fees and draconian early 
termination penalties.
  They are so undesirable that they are not sold in the civilian 
market, where the force of normal competition has driven them out.
  All the more shame that certain brokers used privileged on-base 
access to military personnel to force this product on servicemen facing 
combat.
  Our nation's military personnel deserve the best possible financial 
advice about all the options available to them, with complete and 
accurate information, clearly presented.
  At the very least, they shouldn't be subjected to unscrupulous sales 
practices or offered financial products that no civilian would choose 
and that are not suitable for any investor. We should have banned these 
products and practices years ago; it is high time to do so now.

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