Military and Veterans

Consumer Guide
a guide for service members and their families

Missouri Attorney General

JOSH HAWLEY Military and Veterans Consumer Guide 11
Introduction

O n behalf of all Missourians, thank you for all that you do to keep our
nation safe. Your dedication to our country and the sacrifices you make
on our behalf is very much appreciated. The Missouri Attorney Generals Office
is committed to protecting those who protect us.

One of my goals is to help Missouris active-duty service members, reservists,

and veterans avoid becoming the victims of consumer fraud. Scam artists
often target members of the military and their families because of the
extraordinary demands that military service can place on them, both
domestically and overseas. My goal is to help you identify potential scams
before you become a victim and to provide you with information regarding
who to contact if you are scammed.

While there are many types of consumer fraud, this booklet focuses on the
types of scams that commonly target service members and veterans.

I hope you find this guide informative and helpful. Thank you for your service
to this great nation.

Sincerely,

Joshua D. Hawley
Attorney General

Military and Veterans Consumer Guide 1

Table of Contents
Servicemembers Civil Relief Act..........................................................................................4

General Consumer Fraud........................................................................................................5

Predatory Lending.....................................................................................................................6

Debt Collectors...........................................................................................................................7

Fair Debt Collection Practices Act.......................................................................................8

Mortgage Rescue Fraud........................................................................................................10

Education Fraud.......................................................................................................................12

Residential Rental Scams......................................................................................................13

Landlord-Tenant Law.............................................................................................................14

Identity Theft
Types of identity theft..................................................................................................16
Preventing identity theft.............................................................................................16
What victims can do.....................................................................................................18

Charity Scams...........................................................................................................................19

VA Benefit Scams.....................................................................................................................20

Resources...................................................................................................................................21

2 Military and Veterans Consumer Guide

Military and Veterans Consumer Guide 3
Servicemembers Civil Relief Act

T he most effective tool providing protection to military members is the

Servicemembers Civil Relief Act (SCRA). Some of the key components of
the SCRA include:

Protection against default judgments

Stays of civil and administrative proceedings
Extensions on time limits for filing lawsuits
Stays of eviction proceedings
Protections against foreclosure on residential property
Residential lease termination rights
Automobile lease termination rights
Cellular telephone contract termination rights
Six percent interest cap on consumer debt incurred prior to entry on
active duty

Photo courtesy of U.S. Marines

4 Military and Veterans Consumer Guide

General Consumer Fraud

S ervice members are subject to the same scams as the general public, but
sometimes they and their families may be more vulnerable. Because of
this, scam artists may target areas with large numbers of military personnel.

It is unlawful in Missouri for any person selling merchandise to engage in

misrepresentation, fraud, deceptive acts, unfair practices, or to conceal
material facts from consumers in that sale or advertisement. There are many
types of scams that fall into these categories.

A more complete description of specific scams can be found in the Missouri

Attorney Generals booklet Know Your Rights, which can be found on our
website www.ago.mo.gov/other-resources/publications. It is important that
you report any suspected scam or unlawful business practice to the Consumer
Hotline at 800-392-8222.

CONTACT
Please contact your services Judge Advocate Generals Office or a
private attorney for guidance as to how the SCRAs protections apply
to your specific circumstances.

Military and Veterans Consumer Guide 5

Predatory Lending

P redatory lending involves loans that often have excessive fees, have
extraordinarily high interest rates, and can have prepayment penalties.

Many consumers who enter into predatory loans find that they cannot repay
their loans and are required to borrow more money, often from a predatory
lender. For example, after adding finance charges, interest, and fees, a typical
two-week payday loan often charges an annual percentage rate (APR) over
400%. With such high costs, borrowers can find themselves caught up in a
circle of debt from which it is difficult to escape.

There are several different types of predatory lendors that often target
military members. These include payday loans, title loans, tax refund
anticipation loans, and short-term loans.

Under the Military Lending Act, a service member cannot be charged more
than 36% interest on some types of consumer loans. This interest rate cap
includes interest and fees as well as some ancillary add on products such as a
charge for credit default insurance.

Financial assistance programs are available to service members encountering

financial hardship. Check to see what specific programs are offered by your
branch of service. Military OneSource (www.MilitaryOneSource.mil) is a also a
good place to start.

For additional assistance, contact the Missouri Attorney Generals Office

Consumer Hotline at 800-392-8222.

6 Military and Veterans Consumer Guide

Debt Collectors

S cammers are known to pose as debt collectors in order to try to get service
members or members of their family to send money to pay-off a debt that
was paid long ago or that may not have ever existed. This scam often starts
with a telephone call regarding an allegedly unpaid debt and may include
threats to report the debt to a commanding officer. The scammer will try to
pressure the victim to send payment information over the telephone or send
money through a service similar to Western Union or MoneyGram.

In other cases, debt collectors might contact you regarding a legitimate debt
that you owe. Some debt collectors, however, use inappropriate or illegal
tactics to attempt to scare you or a family member into paying.

Photo courtesy of U.S. Army

Military and Veterans Consumer Guide 7

Fair Debt Collection Practices Act

T he Fair Debt Collection Practices Act (FDCPA) prohibits debt collectors

from using illegal tactics to collect money from consumers. For example,
debt collectors may not:

Lie about the name of the company collecting the debt

Threaten physical violence against you or your family
Call you on the phone frequently for the purpose of annoying
or harassment
Contact you at inappropriate times or places (such as at work)
Say that they are lawyers or work for a government agency unless it is
actually true
Be untruthful or inaccurate about the amount of money you owe
Threaten you with arrest if you dont send them the money they say
you owe

FDCPA
More information regarding the FDCPA is available
on the Federal Trade Commissions website at:
www.consumer.ftc.gov/articles/0149-debt-collection

HOW YOU CAN PROTECT YOURSELF

Know the debts that you owe and become familiar with
the rules that debt collectors must follow.
Always make sure that the debt collector is who he says he is:
Get the name of the person with whom youre
speaking and the name of the company he works for
Make sure you get the name of the company to which the debt is
supposedly owed
Do not send money to pay a debt until you are certain it is a debt you
actually owe.
If you actually owe the debt, try to speak directly with the
company to which you owe the money
Be very skeptical of requests that you pay a debt through Western
Union, MoneyGram, or another wire transmittal service. These services
are often used by scammers and may result in additional fees.

8 Military and Veterans Consumer Guide

 Report debt collection scams to the Missouri Attorney Generals Office
at www.ago.mo.gov, the Federal Trade Commission (FTC) at www.ftc.gov,
or the Consumer Financial Protection Bureau (CFPB) by calling
855-411-2372 or online at www.consumerfinance.gov/servicemembers/.
For additional assistance and resources, contact the Missouri Attorney
Generals Office Consumer Hotline at 800-392-8222.

Photo courtesy of U.S. Air Force

Military and Veterans Consumer Guide 9

 Mortgage Rescue Fraud

F or a number of reasons, homeowners can find themselves in difficult

financial circumstances that can cause them to fall behind on their
mortgage. There are businesses, often referred to as foreclosure consultants,
that target these homeowners with high pressure sales tactics and promises
of being able to obtain a mortgage modification or save the consumers home
from foreclosure. Sadly, these proposed services are often scams. Some of
these businesses may operate through the Internet, but service members are
also targeted through unsolicited telephone calls and the mail.

Scammers may pose as a law firm to make you think that, because they
are lawyers, they can guarantee you a mortgage modification. Often,
these mortgage rescue businesses request upfront fees before any work is
performed. The business may advise you to stop making a mortgage payment
to their original lender or mortgage servicing company and to only pay them.
Once the fee is paid, the scammer disappears without providing meaningful
services.

10 Military and Veterans Consumer Guide

WHAT TO LOOK OUT FOR

Advice that you stop making your mortgage payment or pay the
foreclosure consultant instead of paying your monthly mortgage
payment
Offers to perform legal work from a lawyer who is not licensed to practice
law in Missouri. You can check to see if a lawyer is licensed to practice law
in Missouri by contacting the Missouri Bar at 573-635-4128 or online at
www.mobar.org/
Advice that you should stop working with your lender and only deal with
the foreclosure consultant
Requests that you pay money to someone for helping modify your
mortgage or save your home from foreclosure before all work has been
performed
Demands from the foreclosure consultant that you make your payments
via wire transfer or by signing-up for automatic withdrawals from your
bank account

Remember, if you stop making your monthly mortgage payments your home
may go into foreclosure. Help for homeowners is available without charge
through the Making Home Affordable program. Get more information by
going to www.makinghomeaffordable.gov or calling 888-995-HOPE (4673)
and finding a housing counselor in your area who has been approved by the
U.S. Department of Housing and Urban Development (HUD).

In Missouri, it is illegal in most cases for a foreclosure consultant or mortgage

rescue business to charge any fees before all work has been performed. Please
report these mortgage rescue scammers to the Missouri Attorney Generals
Office Consumer Hotline at 800-392-8222.

Military and Veterans Consumer Guide 11

 Education Fraud

M issouri has many options for service members and veterans seeking to
achieve their educational goals. Todays world has also seen an increase
in on-line and for-profit colleges and educational institutions that may
offer additional convenience. It is important to know that not all of these
institutions and programs are equal. The education benefits provided for
current and former service members can make them a target for scammers.

Some for-profit academic institutions have provided misleading information

to potential students regarding accreditation, graduation rates, job placement
rates, and transferability of credits. Their goal may be to make money using
your federally guaranteed student loans and GI Bill benefits, rather than to
provide you with a quality education. A poor quality education may leave you
with a lot of student debt and a certificate or degree which is not helpful in
the military or the civilian job market.

PROTECT YOURSELF AND YOUR FUTURE

Be on the lookout for sales tactics from educational institutions that

pressure you to make a decision right away. This is your future. Take
your time and look at all options that are available to you. There are
many public and private non-profit institutions of higher learning in
Missouri that may be a perfect fit for your educational goals.
Find out if the school is accredited by the U.S. Department of Education.
The Missouri Department of Higher Education is a good resource for
information about schools in Missouri and can be reached at
800-473-6757 or http://dhe.mo.gov/.
Some students plan to attend a for-profit school and then transfer those
credits earned to a different school to complete their degree. Be sure to
contact the school to which you intend to transfer credits (the second
school) to make certain that it will accept credits from the for-profit
school.
Check with your branch of military service to make sure it will recognize,
or give you credit for, a degree earned at a school you plan to attend.
Contact the Missouri Attorney Generals Office at 800-392-8222 if you
believe you have been subjected to education fraud.

12 Military and Veterans Consumer Guide

Residential Rental Scams

M ilitary members are required to frequently relocate to unfamiliar places.

This can make service members the target of residential rental scams.

A common scam is when a rental property is advertised with monthly rent

that may be considered a great deal for the location. The listing may include
very convincing details such as photos of the house or apartment being
offered for rent.

The scammer pressures the service members to pay a deposit before having
a chance to view the property in person, and then disappears. The advertised
property doesnt actually exist and the scammer is nowhere to be found. Free
internet sites such as Craigslist, or similar web sites, are often used in this type
of scam.

HOW TO PROTECT YOURSELF

Do not be pressured into signing a lease or sending money by wire

transfer or any money transmittal services. Take your time and make sure
youre dealing with a reputable landlord.
Do not send money to someone you have never met for a rental property
you have not seen and inspected.
Conduct research ahead of time for trustworthy real estate and rental
options when looking for housing in unfamiliar locations, including
checking the Better Business Bureau.
Call ahead to your new duty station and ask about any assistance that
your command or military installation provides in locating off-base
housing.
Speak to fellow service members at your new duty station about the local
area and get tips on where to find off-base housing.

Military and Veterans Consumer Guide 13

 Landlord-Tenant Law

T he best way to avoid problems with a landlord is to make sure the lease is
clear about your responsibilities and the landlords. Put in writing who has
to mow the lawn, fix a clogged sink, pay utility bills, etc.

A landlord cannot require more than two months

rent as a security deposit and has 30 days to
ReNTAL LEASE return the security deposit after the lease ends.
Provide the landlord with your new address and
Put in writing who telephone number so they can contact you to do
has to mow the lawn, a final walk through of the rental premises to view
fix a clogged sink, or any damages. If damages are claimed and all or
pay utility bills. part of the security deposit is not returned, the
landlord must provide a list of damages to be paid
from the deposit.

A lease should state which repairs are the landlords responsibility and which
are the tenants. A tenant cannot legally withhold rent payments until repairs
are completed. You can be evicted if you do so. If a home becomes unsafe, the
tenant should contact local health or housing authorities.

A landlord cannot evict a tenant without a court order. The landlord may
begin eviction proceedings for a number of reasons, including damage to
the property and the failure to pay rent. The tenant must be given notice if
an eviction lawsuit has been filed and have the chance to be heard in court
before any eviction can be ordered.

14 Military and Veterans Consumer Guide

More detailed information is available in the booklets Know your Rights
and Missouris Landlord-Tenant Law published by the Missouri Attorney
Generals Office. They are available online at www.ago.mo.gov.

SPECIAL PROTECTIONS FOR SERVICE MEMBERS

Active duty members of the armed forces may end a lease with 15 days notice
if they:

Receive a permanent change of duty station

Receive temporary duty orders (TDY) to a station at
least 25 miles away for 90 days or more
Are discharged or released from active duty
Are ordered to live in government-supplied quarters

Under these conditions, a tenant is entitled to a full refund of the security

deposit if other lease provisions have been met. Tenants may have additional
rights under the Service Members Civil Relief Act.

Photo courtesy of U.S. Navy

Military and Veterans Consumer Guide 15

 Identity Theft

O ne of the fastest growing crimes in the United States is identity theft.

Identity theft is a form of taking, accessing, or using someones personal
information, such as their name, social security number, account number, or
payment card number, without their permission, pretending to be someone
else by assuming anothers identity, or creating a fake identity or account.

TYPES OF IDENTITY THEFT

1. Financial identity theft occurs when someone uses anothers identity to

obtain money, credit, goods, or services.
2. Tax fraud identity theft occurs when an identity thief uses a taxpayers
stolen identity to file a fraudulent return and claim the identity theft
victims tax refund.
3. Medical identity theft occurs when someone uses anothers identity to
obtain medical care or drugs.
4. Insurance identity theft occurs when someone uses anothers information
to obtain insurance coverage or benefits or to obtain health care services
and products. Auto insurance, personal property insurance, and health
insurance are all subject to abuse.
5. Synthetic identity theft occurs when someone uses various data elements
of others in order to create a synthetic, or fake, person.
6. Drivers license identity theft occurs when someone obtains a drivers
license using anothers personal information.
7. Criminal identity theft occurs when someone poses as another person
when being investigated or apprehended for a crime.
8. Social Security identity theft occurs when someone uses anothers Social
Security Number (SSN) to apply for government benefits, open bank and
credit card accounts, apply for a loan or utility service, or rent a place to
live. This can apply to a childs SSN as well as an adults.

PREVENTING IDENTITY THEFT

Use a paper shredder to destroy financial documents or other documents

with personal information.
Dont carry your Social Security card with you or write it on a check. Place
the card in a safe place, and only give your number out when absolutely
necessary.
Dont share personal information with anyone you dont trust. Before
sharing it with businesses or at the workplace, ask why they need it, how
they will safeguard it, and the consequences of not sharing.
Dont over-share on social networking sites. Consider limiting access to
only a small group of people. Never post information that could identify
you, like your Social Security number or your full name, on websites that
16 Military and Veterans Consumer Guide
 the public can access. Dont post the year of your birth if you decide to
post your birthday.
Change your passwords every 60 days and make them strong by using
a combination of upper case letters, lower case letters, numbers, and
symbols.
Order a free copy of all three credit reports from www.annualcreditreport.
com or on the CFPB website. You are entitled to one free report each year
from each of the three major bureaus. Consider making these requests
throughout the year so that you can review an up-to-date, free credit
report once every few months.
Have your mail sent to a post office box or get a locking mailbox. Also
take outgoing mail to the post office.
Use virus protection and a firewall program to prevent your computer
from being accessed by others, and keep them up to date. Run your virus
scan on a regular basis.
Keep your personal information in a secure place at home.
Opt out of pre-approved credit card offers and receive fewer solicitations
at home by calling 888-567-8688 or visiting www.optoutprescreen.com.
Destroy the labels on prescription bottles before you throw them away.
Dont share your health plan information with anyone offering free health
services or products.
Password protect your cell phone and other devices.
Read any notices that are sent to you by mail that describe the way
your data might have been exposed in a data breach. If you need help
understanding the letter or want to confirm that the notice is real, you
can contact the Missouri Attorney Generals Office at 800-392-8222.

Photo courtesy of MO Air National Guard

Military and Veterans Consumer Guide 17

 WHAT VICTIMS CAN DO

Order a copy of your credit report for each of the 3 credit reporting
agencies from www.annualcreditreport.com or on the CFPB website.
Dispute any fraudulent charges or accounts promptly.
Place a fraud alert on your credit report with the credit reporting
agencies. This tells creditors to follow certain procedures before they can
open new accounts in your name or make changes to existing accounts.
Calling and alerting one bureau will place an alert to all three.
Close any accounts that you think have been tampered with or opened
fraudulently.
Change all of your passwords, especially if you use the same password on
multiple websites.
Call the security or fraud departments of each company where an
account was fraudulently opened or changed without your permission.
Complete a Victims Complaint and Affidavit form.
Keep a log of all your actions, including all telephone calls, letters and
other documents, and note any deadlines that you encounter.
Block any fraudulent information from your credit report.
If youve become a victim of identity theft, file a police report with your
local police or sheriff s department.
File a complaint with the Attorney Generals Office at www.ago.mo.gov.

Photo courtesy of U.S. Air Force

18 Military and Veterans Consumer Guide

Charity Scams

S ome unscrupulous scam artists have posed as charities to steal money

from those wanting to help the less fortunate. Scam artists have also posed
as military veterans or claimed to be raising money to help veterans, only to
pocket the donations.

QUICK FACT
Many charities and non-profits hire professional telemarketers who may
take a portion of your donation as a fee. In some cases, the telemarketer
may take up to 80% of your donation.

Most consumer advocates suggest giving to charities that spend no more

than 35% on telemarketing and other administrative fees.

HOW TO PROTECT YOURSELF

Research a charity before you donate money. Be wary of sound-alike

groups
Never give out personal information
Use the Missouri Attorney Generals Office Check a Charity at
www.ago.mo.gov/civil-division/consumer/check-a-charity to see if a
charity has registered with the Office
If you are unsure, ask how the charity will use your donation and what
proportion may be spent on its administrative and fundraising expenses

Military and Veterans Consumer Guide 19

 VA Benefit Scams

S ome military veterans and family members have been contacted by scam
artists who say they must pay a fee to obtain their Department of Veterans
Affairs (VA) benefits. Scammers may offer assistance with filing disability
claims or obtaining other benefits from the VA for a fee. Scammers often
imply they are affiliated with a government organization.

No fee is required to obtain any VA benefit. Additionally, there are numerous

veterans service organizations that provide free assistance to veterans who
need help obtaining their VA benefits or who have questions about the VA.

If you are contacted by one of these scammers you should contact the
Missouri Attorney Generals Office at 800-392-8222.

20 Military and Veterans Consumer Guide

Resources
Agency Services Offered Phone/Web
STATE AGENCIES
Attorney Handles complaints against Consumer
Generals Office businesses for deceptive or unfair Protection:
sales, advertising practices & 800-392-8222
charitable solicitations. Offers online
complaint form & allows consumers No Call Hotline:
to lookup complaints filed against a 866-662-2551
business. No Call List & Hotline also
available to reduce telemarketing www.ago.mo.gov
calls.
Crime Victims Provides financial assistance to 573-526-6006
Compensation violent-crime victims or their
Program dependents. 800-347-6881
Department of Investigates reports of abuse, 573-751-6400
Health & Senior neglect or financial exploitation.
Services
Division of Handles complaints about mortgage 573-751-3242
Finance bankers, credit bureaus, payday &
title loan stores & other lenders.
Department Handles complaints regarding 800-726-7390
of Insurance, insurance companies and will
Consumer verify credentials of insurance sales
Affairs representatives.
Public Service Investigates complaints against 800-392-4211
Commission public utilities and manufactured
housing (such as mobile homes)
defects.
Office of Chief Processes complaints against 573-635-7400
Disciplinary attorneys in Missouri.
Counsel
Secretary of Toll-free hot line handles complaints 800-721-7996
State and inquiries about stockbrokers, 573-751-4153
broker-dealers and investments.
Provides information on registrations
of corporations, fictitious names and
benevolent organizations.

Military and Veterans Consumer Guide 21

 Agency Services Offered Phone/Web
FEDERAL AGENCIES
Americans with Information line provides 800-514-0301
Disabilities Act information on federal guidelines for
the disabled. TTY:
800-514-0383

www.ada.gov
U.S. Dept. of Provides information on numerous 800-827-1000
Veterans Affairs VA benefits & programs that include
education, home loans, & health www.va.gov/
care.
Federal Trade Provides information on consumer 877-382-4357
Commission protection, tips for consumers, &
allows consumers to file complaints TDD-TTY:
against a business. 866-653-4261

www.ftc.gov/
Federal Provides phone numbers & general 800-333-4636
Information information about federal agencies
Center & programs.
Labor Dept., Handles wage disputes. 866-487-9243
Wage & Hour
Division Kansas City:
913-551-5721

St. Louis:
314-539-2706
Social Security Provides information on retirement, 800-772-1213
Admin. disability & benefits for dependents
& survivors. TTY:
800-325-0778

22 Military and Veterans Consumer Guide

 Agency Services Offered Phone/Web
MILITARY AGENCIES
U.S. Armed Online form that service members http://
Forces Legal can use to locate nearby military legalassistance.
Assistance installations offering legal services. law.af.mil/
content/locator.
php
U.S. Army Judge Provides education, information and 703-693-0000
Advocate legal services to soldiers.
https://www.
jagcnet.army.mil/
legal
U.S. Navy Judge Provides in-depth information, 202-685-5275
Advocate downloadable documents &
descriptions of legal services. www.jag.navy.
mil/legal_ser-
vices.htm
U.S. Air Force Provides information on legal www.afjag.af.mil/
Judge Advocate services to the Air Force & its
members.
Coast Guard Provides advice & information www.uscg.mil/
Judge Advocate regarding legal issues to service legal/la/legal_
members, dependents & retirees. assistance_home.
asp
MilitaryOne Offers help to active duty & reserve 800-342-9647
Source service members & their families.
www.militaryone-
source.mil/

Military and Veterans Consumer Guide 23

 Agency Services Offered Phone/Web
PRIVATE AGENCIES
AARP Provides resources & promotes 888-687-2277
programs & issues of interest to
seniors.
BBB Wise Giving Provides information on national 703-276-0100
Alliance nonprofit organizations.
Better Business Handles consumer complaints Kansas City:
Bureau throughout Missouri. Offers free 816-421-7800
mediation services for disputes
between customers and businesses. Springfield:
417-862-4222

St. Louis:
314-645-3300
Better Business Provides information, education & 703-276-0100
Bureau Military outreach to military communities.
Line
Missouri Bar Provides free information on legal 573-635-4128
matters such as probate, wills,
bankruptcy & finding legal help.
Missouri Bar Provides lawyer referrals in your area. Greene County:
Lawyer Referral There is a fee. 417-831-2783
Service
Statewide:
573-636-3635
Missouri Victim Nonprofit organization advocates for 800-698-9199
Assistance fair treatment of crime victims.
Network

24 Military and Veterans Consumer Guide

OFFICE OF ATTORNEY GENERAL
JOSH HAWLEY
P.O. Box 899
Jefferson City, MO 65102
573-751-3321
www.ago.mo.gov
Revised May 2017