Defense CUs Back On-Base SalesReforms

Register now

WASHINGTON - (05/09/05) -- Credit union representatives toldPentagon officials Friday they support proposed rules to protecton-base military personnel from unscrupulous sales tactics byinsurance companies. "Frankly, sir, this proposal is overdue,"Roland Arteaga, president of the Defense CU Council, told thehearing's chairman, Col. Michael Pachuta. NAFCU President FredBecker told the Defense Department panel the proposed changes arenecessary to protect military personnel. But representatives fromseveral insurance companies said the proposals are unfair becausethey favor on-base credit unions and banks by, among other things,encouraging them to develop financial education programs formilitary personnel. The proposals would restrict the use ofcommercial sponsorships of Defense Department programs to obtainpersonal contacts for solicitation; bar the sale of insuranceproducts disguised as investments; and ban the use of militaryidentification to gain access to bases for solicitation.

For reprint and licensing requests for this article, click here.