the death of either the grantor or the grantee, by any time
limit set by the document itself, or by specific
revocation. If you have an outstanding power of attorney
that has served its purpose, you should seek its return.
Additionally, if you have an outstanding power of
attorney that has been placed in public records and you
have any reason to believe that the powers granted might
be abused, talk with your legal assistance officer or
civilian attorney about obtaining surrender of the
original power of attorney and entering a specific
revocation in the proper public records.
The policy of the Department of the Navy is to
promote habits of thrift and to encourage all members
of the naval service to conduct their financial affairs in
such a manner as to reflect credit upon the naval
service. From inception to final settlement, the
responsibility for an obligation rests solely with the
creditor and the debtor. The extent to which COs may
cooperate with creditors is limited to administrative
referral of correspondence to the member. The CO
should make sure the member concerned
communicates his or her intentions in the matter to the
creditor. However, under the Fair Debt Collection
Practices Act (Public Law 95- 109), contact by a debt
collector with third parties, such as COs, for the
purpose of aiding debt collection is prohibited without
prior consent of the debtor or without a court order.
The CO should make sure members of the
command have been instructed in the provisions of
MILPERSMAN 6210140. Disinterested third party
counseling should be made available by each command
to assist members with problems.
Thrift is not only a virtue but, for most people, a
necessity. The way in which members handle their
private financial affairs provides a reliable indication of
their general character and trustworthiness.
Before acceptance of any credit plan, members
should practice the following:
. Evaluate their financial capabilities and set up a
budget that will prevent hopeless entrapment in
overburdening and ever-increasing debts.
l Consult with a legal assistance officer when
contemplating large purchases on credit to avoid
commitments that may be difficult or impossible to carry out.
. Be wary of the high-pressure salesperson.
l Think carefully and seek advice before signing
an agreement or contract. Never sign a blank contract
and always multiply the number of payments by the
amount to determine the total payment. Note
particularly the penalty clauses.
Failure to pay just debts or repeatedly incurring
debts beyond a members ability to pay is evidence of
irresponsibility and may jeopardize the members
security clearance status, advancement status, duty
assignment, qualification for reenlistment or extension
of enlistment, and in aggravated circumstances may
become grounds for disciplinary action or
A savings maybe realized by setting funds aside to
provide for cash purchases through civilian military
stores. Encourage members to take advantage of the
saving, counseling, and lending services provided by
credit unions organized by and for Department of the
Navy civilian and military personnel.
Instruct your members on the use of the Statement
of Full Disclosure forms. Each member desiring to
obtain credit or execute a loan should receive
beforehand from the legal assistance officer or other
source of supply two copies of the Certificate of
Compliance and Standards of Fairness (one copy for
each party to the contract). It should be noted that a seller
or lender may present the information provided for in
the Statement of Full Disclosure form through any
different form as most convenient to them as long as all
the information is disclosed and a copy provided to the
borrower or purchaser.
Members who do not seek or heed advice
beforehand or who otherwise encounter difficulties in
paying their debts should be encouraged to consult with
a legal assistance officer as prescribed in the Manual of
the Judge of Advocate General, JAGINST 5800.7C.
Bankruptcy is not an easy way out of indebtedness.
The Navy neither encourages nor discourages the filing
of a petition in bankruptcy. The circumstances
prompting bankruptcy proceedings are considered
officially since they may reflect adversely on the
military character of the petitioner. A discharge in
bankruptcy does not give a member immunity from
prosecution for offenses of failure to pay just debts
committed before a petition of bankruptcy.
Upon receipt of an indebtedness complaint, the CO
must make a determination about the creditor. If it is
determined that the debt collector is in violation of the
Fair Debt Collection Practices Act or a state statute
regulating debt collection practices, the correspondence