Complaint Review: AAFES

AAFES is a Business, it's true.  But it even more corrupt as it has powers above the law given by the government.  

AAFES is like any other retails out there. Whether it's government or not, if you owe them credit....you will pay regardless. Remember, Uncle Sam will take what you owe regardless of who work for.

I have been through a similar situation, albeit not with AAFES but with the PHEAA, which is the Student Loan Service in Pennsylvania. I became disabled and asked for forgiveness of my Student Loans. This was accomplished, but then almost 15 years, a husband and child later; The Student Loan Servicing Center took our income tax rebate and were garnishing my Social Security Disability Checks.

I received legal aid from an Attorney and was told that they can do one or the other but not both. We were advised to file an injured spouse claim with the IRS, we now file one every year and have not had a problem since. If you are not married then this will not help you but because they are only allowed to take from one kitty or the other an Attorney might be in order.
I hope this helps and I will keep you in my prayers.

Oh, BTW, Thank you for serving our country. God Will Bless You.

Or, Treasury Offset Program; and, any monies you have coming to you via the Treasury Department, which includes IRS and military retirement payments, they can garnish and usually will. If I were you, I would pay them off and close the account, if that's the route you want to take. Personally, though...if you've already gone three mortgage payments behind, your credit is probably too shot to even qualify for the simplest of loans, unless you want to get taken by a shark. I'd file for bankruptcy and start over again. It's really not as bad as people say, and it'll help you get back on your feet a lot faster. Which would you rather do, try to eak out a living for the next three years, while hoping your credit repairs itself, or use the knife now, and spend the next three years being a bit more frugal with your money and your credit? Answer is a no-brainer to me. Donald trump has filed for bankruptcy some 29 times. If its so bad, how come he does it?

Something is being missed here, in addition to the personal savings I used for the business, I purchased "a few" things on the AFEES card. Here is what is being missed, I didn't utilize the entire credit on the card for business purchases, I didn't take the easy way out and file bankruptcy. Even though I missed 3 mortgage payments, my assets are secure now. In the post I simply asked for legal advise in explaining how AFEES can garnish wages AND take income tax checks? Making a difference for others as well, that creates the hardship, outside of the comfort zone that some may be used to. Not looking for the normal critisim and assumptions, which is fine if that is all you have to offer, I already know the shortcomings. He is actually a she, those days have been gone for sometime.

As a member of the armed forces and AAFES patron for over 20 years I think listing the organization here as a rip-off is a bit much. It doesn't hook young enlisteds, it provides a lot of them their first dealing with credit and the prices along with zero tax are helpful. Sure you can find some of the same deals at Wal-Mart but it hasn't already been so. Not to mention Wal-mart doesn't go to Iraq (YET) or contribute to Morale, Welfare and Recreation. This guy is probably an exception and should not have used his Star card for his business. By the time we retire hopefully we have the skills to not get in these types of jams. Unfortunately he didn't but it's hardly AAFES fault.

Using your own personal finances to open up a business. What you should have done is open up a "protected business", where your personal finances weren't at stake. You found out the hard way what can happen if you don't protect yourself when you do open up a new business. 50 to 90% of new businesses don't make it past the first year, depending on which field they're in. Look on the bright side, your monies are going to support the troops. I'd check into bankruptcy but I don't know that you can claim a business loss in BK court. Check with an attorney. Try taking out a loan to pay aafes off. Those guys can be sharks and they aren't all they're cracked up to be. I don't bother going out to the exchanges anymore, it's not worth the couple of bucks you save in tax. They've got these young troops hoodwinked into believing they're such a great deal. They sucker them in with their credit card and they're hooked for life.