With huge numbers of military personnel and reservists deployed overseas, U.S. Rep. Max Burns (R-GA) has introduced the Military Personnel Financial Services Protection Act, which he says is designed to prevent the sale of "abusive" insurance and investment products to military personnel.
According to the congressman, the proposal would ban the sale of mutual fund contractual plans outright and ensure full regulation of life insurance and other financial products sold on military bases.
"It is an outrage that financial products that were found so disreputable that they disappeared from the civilian market 20 years ago have continued to survive on-post, by being pawned-off on unsuspecting young service people as part of 'approved' savings and insurance plans," said Burns. "In addition, we have far too many unscrupulous insurance companies using federal military property to dodge state insurance commissioners and sell overpriced policies with virtually no oversight. We cannot allow those who defend our freedom to continue to be unfairly targeted for the sale of dubious financial products."
The House Financial Services Subcommittee on Capital Markets, Insurance and Government Sponsored Enterprises was holding a hearing on the bill as The Credit Union Journal was going to press.
"Congress has the highest obligation to make sure that the very best of our citizens-America's men and women in uniform--are receiving the best and most honest financial advice. The very idea of trying to peddle to them products that would be objectionable to the civilian population is really almost too offensive for words," said Subcommittee Chairman Richard Baker (R-La.)
