judgment, the correspondence must contain a certificate
of compliance (or its equivalent) and proof that the
credit transaction was made following the Truth in
Lending Act and its Standards of Fairness. The creditor
also must submit a Statement of Full Disclosure
showing the terms of the transaction disclosed to the
service member when the contract was executed.
If the debt collector is in violation of the Fair Debt
Collection Practices Act or a state statute regulating debt
collection practices, return the correspondence to the
sender, along with a letter similar to the sample letter in
REFERRAL TO SERVICE MEMBER
Normally a division officer or you, as the senior LN,
refers a qualified indebtedness complaint to the service
member at a conference where the member is
confronted with the alleged debt. If the service member
acknowledges the debt and his or her ability to pay,
instruct the member on the fact that he or she is expected
to make good on the debt as soon as possible. If the
service member disputes the debt or states an inability
to pay, refer him or her to the nearest legal assistance
CORRESPONDENCE WITH THE
When you refer a complaint to a service member
debtor, you should notify the creditor of the referral and
some indication of the debtors intentions. Prepare and
send a letter similar to the sample letter in figure 14-2 to
the creditor and make sure the members intentions
reach the creditor either directly or through a legal
When the correspondence shows the complaining
creditor has no judgment, is subject to the Truth in
Lending Act, and contains no evidence of the
compliance-disclosure requirements already discussed,
prepare and send a letter similar to the sample letter in
figure 14-3, enclosing a copy of the Standards of
Fairness and forms for a Statement of Full Disclosure
and the Certificate of Compliance. Hold the complaint
in abeyance pending reply from the creditor.
If the creditor resubmits the complaint and includes
the completed, required forms, or their equivalent, the
complaint is considered qualified and you should
This is in reply to your letter of (date) concerning the alleged indebtedness of (rate, name).
The policy of the Department of the Navy concerning indebtedness is that members of the naval service
shall honorably discharge their just debts. The Department of the Navy, however, has no authority to
enforce settlement of any private claims made against members of the naval service, nor is adjudication
of disputed claims a matter under the cognizance of the Department of the Navy.
The Navy will foward complaints of indebtedness to members advising them to communicate directly
with the claimant regarding their intention in the matter, provided that the letter of indebtedness complies
with statutory and regulatory requirements.
A careful review of the contents of your correspondence suggests that it is in violation of (statute [federal
or state or both]), in that (brief description of apparent violation, for example, correspondent is a member
of the class of persons prohibited from contacting third parties). Therefore, the correspondence is returned
to you without action.
You are advised to communicate directly with (rate, name) about this matter.
Figure 14-1.-Sample letter to debt collector in violation of Fair Debt Collection Practices Act or state statute.