Washington, DC, June 23, 2005 – The Financial Service Centers of America (FiSCA), the nation’s trade association for financial service centers, today announced their new fourteen-point Ethical Code of Conduct for payday advance lending to military personnel and released a new brochure that will provide FiSCA members, America’s armed forces personnel and their families with information on payday advances, financial literacy and credit counseling.

“FISCA has made providing necessary and fair financial services and products to our men and women in uniform a top priority,” said Chairman Dachis. “FiSCA’s board passed the code of ethics and approved the creation of this financial literacy brochure for military personnel because we strongly believe in protecting the financial health of those protecting our nation.

“That is why we’ve asked our members to immediately suspend or defer debt collection activity involving military personnel stationed in or assigned to a combat area or in a combat support unit during the term of that assignment or posting,” continued Dachis. “We’re also calling for a minimum 30-day deferral of collection activity involving National Guard or Reserve military personnel when there is an unanticipated call-up of their units.”

The FiSCA brochure highlights the association’s fourteen-point code of ethics, while providing specific information -- like hotline phone numbers and websites -- on financial literacy education and credit counseling for military personnel.

Dachis went on to say that FiSCA members will provide these brochures and financial literacy materials to military personnel borrowers and hopes Congress will use the FiSCA code as a model for federal legislation. “We owe that much to the families who continue to sacrifice so much for our nation and democracy throughout the world.”

FiSCA’s Ethical Code of Conduct for Payday Advance Lending
to Military Personnel

1. Commitment to conduct all payday advances ("PDA’s") to military personnel with sensitivity to the unique circumstances in which they and their families are situated.

2. Immediate suspension or deferral of collection activity involving military personnel stationed or assigned to a combat area or in a combat support unit during the term of that assignment or posting. 

3. Immediate deferral for a period of at least 30 days of collection activity involving National Guard or Reserve military personnel when there is an unanticipated call-up of their units. If their units are stationed in a combat area or in combat support, collection activity must be suspended or deferred throughout the posting and for a reasonable period, of at least 30 days, after it concludes.

4. FiSCA members will voluntarily suspend the accrual of all interest charges for any PDA debt in which interest is reduced under the Service members Civil Relief Act and while that statute is applicable.

5. Reasonable inquiry into the ability of military personnel to repay PDA’s.

6. Making available financial literacy materials to military personnel borrowers.

7. Making available reasonable payment plans to military personnel and strict adherence by FiSCA members to the terms of those payment plans.

8. Prompt response and cooperation with armed services financial counselors seeking to establish payment plans for military personnel in connection with PDA agreements.

9. Curbs on collection practices that might adversely affect the service status of military personnel borrowers, including collection activities that involve notifying superior officers or the service branch in which the borrower is enrolled.

10. Absolute prohibitions on wage garnishments or levies on the salaries or compensation of military personnel.

11. Making available to military personnel borrowers any credit counseling pamphlets developed and periodically updated by FiSCA, including in consultation with military authorities.

12. Adherence to any protocols developed by FiSCA or its applicable state affiliates for distributing referral information to PDA borrowers who are military personnel to military sponsored credit counseling or generally available credit counseling agencies.

13. Distribution of access information to FiSCA's website on which is posted pertinent contact information and FiSCA's Ethical Code of Conduct for Lending to Military Personnel.

14. Absolute commitment to disseminate the FiSCA Ethical Code of Conduct among all employees providing PDA related services and monitoring their comprehension/ implementation of the Code's provisions.

FiSCA, founded in 1987, is the national trade association and voice of the industry representing more than 5,000 individual financial service centers across the United States.  FiSCA members provide a wide variety of financial services and products to their communities, including check cashing, money orders, money transfers, and electronic bill payment services, automatic teller machine access, government benefit and payroll payments, deferred deposit services, electronic tax preparation, prepaid debit cards, deposit acceptance services, public transportation fare and token sales, motor vehicle license plate and title distribution, postage stamp sales and numerous other services. For more information visit www.fisca.org.

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