Army & Air Force Mutual Aid Association

"Arial",sans-serif;">Background Staff Sergeant [redacted] became an AAFMAA member in November, As an AAFMAA member on active duty with the military, she was eligible for the Career Assistance Program This program allowed for a loan of $5,at a 1.5% interest rate Monthly loan payments were established via government allotment scheduled over a four year repayment schedule The CAP Loan was funded January once the allotment started for the scheduled monthly payment of $ Payments continued for the loan through December In January the scheduled monthly payments stoppedBilling notices by [redacted] and email were delivered explaining payments due and impact if not paid On February 2015, AAFMAA agreed to lower the monthly CAP loan payment to $per month in lieu of the $per month with an established recurring payment plan AAFMAA did not change the terms of the Loan, charge any late fees or increase the interest rate above 1.5% AAFMAA accepted one $loan payment for the January payment due in February Acknowledgement of payment reporting outstanding balance of $2,was mailed by [redacted] on February Without follow through of the payment plan, communications were sent by email and [redacted] of the CAP loan default and reported the balance due of $2,(balance from February plus accrued interest to date) From February to April AAFMAA had not received an established payment method for the CAP LoanThe account was marked as a default and forwarded to [redacted] , which is the company that assists AAFMAA with collecting delinquent debts At that point [redacted] contacted another agency, [redacted] , to assist them in [redacted] to collect the debt owed Specific issue Staff Sergeant [redacted] complaint concerned an extra $interest charge that was added by the collection agency to her defaulted loan balance of $2, This made the total outstanding balance $2, The concern stated is correct, no interest charges or fees should have been added to the account AAFMAA’s primary collection agency, [redacted] , forwarded this account to [redacted] ***in [redacted] for collection (The consumer referred to the company as [redacted] ***in her complaint.) [redacted] ***added the $to the account in errorThe $has since been removed from the outstanding balance We have been advised that a recurring payment plan to pay off the loan has been establishedAt this point in time, neither AAFMAA nor [redacted] ***has forwarded the account to the three credit bureaus If Staff Sergeant [redacted] understands differently, we need to be provided a copy of reports stating otherwise Attached is the letter that we have sent back to the SSG [redacted] , which explains the circumstances

AAFMAA has determined all issues/concerns have been addressed. Application for insurance was withdrawn by applicant. If there are other questions or concerns do not hesitate to contact me. Thank you for address this matter. Kathie [redacted] B [redacted] , FLMI, ACS AAFMAA Policy Services Manager email- [redacted] @aafmaa.com Tele: ###-###-####

To Whom it May Concern-
The attached communication was sent to *** *** *** *** by *** ** yesterday November Should there be questions or concerns do not hesitate to contact usKathie H*** ***
Manager AAFMAA Policy Services*** *** *** ***
*** *** * Reston, VA ***Tele: ###-###-####

AAFMAA has determined all issues/concerns have been addressed. 
Application for insurance was withdrawn by applicant.
If there are other questions or concerns do not hesitate to contact me.
Thank you for address this matter.
 
Kathie * B[redacted], FLMI, ACS
AAFMAA Policy Services Manager
email-[redacted]@aafmaa.com  Tele: ###-###-####

"Arial",sans-serif;">Background.  Staff
Sergeant [redacted] became an AAFMAA member in November, 2012.  As an AAFMAA member on active duty with the
military, she was eligible for the Career Assistance Program.  This program allowed for a loan of $5,000 at a
1.5% interest rate.  Monthly loan payments
were established via government allotment scheduled over a four year repayment
schedule. 
 
The CAP Loan was funded 01 January 2013 once the allotment
started for the scheduled monthly payment of $107.25.  Payments continued for the loan through December
2014. In January 2015 the scheduled monthly payments stopped. Billing notices
by [redacted] and email were delivered explaining payments due and impact if not paid. 
 
On 02 February 2015, AAFMAA agreed to lower the monthly CAP
loan payment to $50 per month in lieu of the $107.25 per month with an
established recurring payment plan.  AAFMAA
did not change the terms of the Loan, charge any late fees or increase the
interest rate above 1.5%.
 
AAFMAA accepted
one $50 loan payment for the January 2015 payment due in February 2015.
Acknowledgement of payment reporting outstanding balance of $2,471.44 was
mailed by [redacted] on 23 February 2015. 
Without follow
through of the payment plan, communications were sent by email and [redacted] of the
CAP loan default and reported the balance due of $2,473.57 (balance from 2
February 2015 plus accrued interest to date).
From 2 February
to 6 April 2015 AAFMAA had not received an established payment method for the
CAP Loan. The account was marked as a default and forwarded to [redacted], which is the company that assists AAFMAA with collecting delinquent
debts.  At that point [redacted] contacted another agency, [redacted], to assist them
in [redacted] to collect the debt owed. 
Specific issue.
Staff Sergeant [redacted] complaint concerned an extra
$36.49 interest charge that was added by the collection agency to her defaulted
loan balance of $2,473.57.  This made the
total outstanding balance $2,510.06. 
 
The concern stated is correct, no interest charges or fees
should have been added to the account.  AAFMAA’s
primary collection agency, [redacted], forwarded this account to
[redacted]. in [redacted] for collection.  (The consumer referred to the company as
[redacted]. in her complaint.)  [redacted]. added the
$36.49 to the account in error. The $36.49 has since been removed from the outstanding
balance. 
 
We have been advised that a recurring payment plan to pay
off the loan has been established. At this point in time, neither AAFMAA nor [redacted]. has forwarded the account
to the three credit bureaus.  If Staff
Sergeant [redacted] understands differently, we need to be provided a copy of
reports stating otherwise. 
 
Attached is the letter that we have sent back to the SSG
[redacted], which explains the circumstances.