AF will deduct delinquent card balances from pay

AF will deduct delinquent card balances from pay

The Defense Finance and Accounting Service in October will start making involuntary deductions from the pay of government credit cardholders among the Air Force's 8,000 personnel if their accounts become more than 90 days overdue.

The General Services Administration recently announced that 4 percent of Defense Department SmartPay cardholders' accounts are more than 61 days delinquent [see story at gcn.com/20_25/inbrief/16921-1.html]. GSA said most civilian agencies had 1 percent delinquency or less. The overall national rate is about 4 percent.

The involuntary Air Force deductions can go up to 15 percent of pay. Michael Weber, Air Force travel card program manager, said that Bank of America in July wrote off $161,000 in overdue payments from Air Force cardholders.

Before deductions begin, the bank will notify cardholders who have not paid in 90 days and will offer them options for repayment. If they do not agree or if they fall behind, DFAS can begin immediate involuntary deductions from pay, and card privileges will be revoked.

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