WASHINGTON – NAFCU moved yesterday to get Congress involved in a brewing controversy over a new JP Morgan Chase Mastercard brought on to the military bases to be used at Army and Air Force Exchange Service (PX) facilities.
NAFCU President Fred Becker asked leaders of the House Financial Services Committee to review the new Chase card as part of its broader ongoing study of credit card practices. In a letter to Rep. Carolyn Maloney, chairman of the Financial Services Subcommittee on Financial Institution, Becker said the card violates Department of Defense policies on "one bank, one credit union" per base, as well as DoD bars on its varied operations conducting their own financial services.
The NAFCU Chief also said he believes the new card violates provisions of last year’s law restricting predatory financial practices on military bases.
"We urge your committee to pay close attention and include this topic in your discussion as reserve Officer Training Corps students may be impacted," said Becker.
"We are puzzled as to why AAFES would clearly violate regulations that have been in place for years by introducing a credit card that can only service to further entice young Soldiers, Sailors, Marines and airmen into a cycle of debt," Becker wrote the lawmaker.
NAFCU and defense credit unions have also asked the DoD to investigate awarding of the new card, the only one that will be used on all military bases worldwide.
