(3) Substantiated adverse complaints or reports from (i) Federal or state regulatory agencies or commissions or other statutory authorities having enforcement, licensing, or regulatory powers. (ii) Consultants retained by the DoD and recognized financial, investment, insurance or consumer advisory services. (iii) Members of Congress. (iv) Chambers of Commerce, better business bureaus, consumers' organizations. (v) Professional, business and trade associations. (vi) Defense personnel (with particular weight to be given to verified reports of transactions involving youthful personnel in the lower pay grades involving unethical or sharp, if not illegal, practices). (4) Prompt action will be taken upon receipt of any substantiated adverse complaints or reports from any of the above sources or when DoD personnel discover any of the following irregularities: (i) The use of any manipulative, deceptive, or fraudulent device, scheme, or artifice, including misleading advertising or other misleading sales literature. (ii) The solicitation (by mail or otherwise) offering purchases, investments, loans, insurance, etc., when such communications or presentations are composed, enveloped, or delivered in any manner which gives rise to any appearance that the offer is sponsored or has the endorsement of the DoD or any element thereof, or that the offeror may possibly be a Federal quasi-governmental agency. (iii) Improper deportment by agents or representatives while soliciting Defense personnel including the offering for sale of any thing which fails to meet the requirements of this part, implementing instructions, or Service regulations. (iv) The possession of allotment forms by agents. § 43.8 Declaration of “off-limits". (a) In addition to suspension of any on-base solicitation or accreditation privileges, within the scope of this part, commercial businesses, creditors, lenders, agents, or persons who are found to be in violation of the terms of this part or implementing instructions and Service regulations, or that have otherwise victimized members of the Armed Forces, (1) "Suspension" means the termination or withholding of the privileges of any one or all of the following as may be decided appropriate: (i) On-base solicitation and sale. (ii) DoD accreditation of the commercial enterprise, vendor, organization, company, or agent. (2) "Off-limits" establishments or areas are designated by those commanders or officials announced in this part or the Joint Service Regulation (see Joint Regulations, "Armed Forces Disciplinary Control Boards" (AR 15-3, DSAR 5725.1, BUPERSINST 1620.4, AFR 125–11, MCO 1620.1, COMDTINST 1620.1) March 12, 1965), to assist in maintaining discipline and safeguarding the health, morals, and welfare of military personnel. (b) Application of regulatory issu ances: (1) Below Military Department level, in off-limit actions the provisions of the Joint Regulations, "Armed Forces Disciplinary Control Boards" (AR 15-3, DSAR 5725.1, BUPERSINST 1620.4, AFR 125-11 MCO 1620.1, COMDTINST 1620.1), March 12, 1965, apply. (2) The provisions of this part govern in suspensions or off-limits actions reviewed or taken at Military Department or Office of the Secretary of Defense levels, but records and actions taken under Joint Regulations, "Armed Forces Disciplinary Control Boards" (AR 15-3, DSAR 5725.1, BUPERSINST 1620.4, AFR 125-11, MCO 1620.1, COMDTINST 1620.1), March 12, 1965, will be reviewed in off-limits actions originated by military commanders. (3) A Military Secretary or the Secretary of Defense may request an Armed Forces Disciplinary Control Board to make recommendations on substantiated adverse reports which may come to their attention directly or from other than military sources. (c) Commanders may order suspensions under § 43.7, but when such suspension occurs for cause (§ 43.7(b)) the reason therefore will be included in prompt notifications to the party or parties; agent(s); all appropriate regulatory or enforcement officials including those in state of domicile and license; and the cognizant Military Department, including a recommendation as to whether the suspension should be extended throughout the Department. In off-limits actions arising under Joint Regulations, "Armed Forces Disciplinary Control Boards" (AR 15-3, DSAR 5725.1, BUPERSINST 1620.4, AFR 125-11, MCO 1620.1, COMDTINST 1620.1), March 12, 1965, major commanders may make appropriate recommendations to the cognizant Military Secretary for extending such actions throughout the DoD. (d) The Secretary of a Military Department, with or without the recommendation of a subordinate command may, after review of the record, recommend to the Secretary of Defense that the suspension action or the off-limits order be extended throughout the DoD. The Secretary of Defense, after a similar review of the record may concur in the recommendation of the Military Secretary and order the suspension action or the off-limits order extended throughout the DoD. The Secretary of Defense may also take such action without the recommendation of a Military Secretary after review of the record and recommendations of a Board. Such Board will be required to follow procedures prescribed or similar to the Armed Forces Disciplinary Control Board. (e) Termination of suspension actions or off-limits orders. Only the highest authority ordering a suspension action or an off-limits order can terminate such action or order. (a) Due to the necessity of maintaining consistent and uniform policies on which the business community can rely throughout the DoD overseas areas, unified command commanders beyond the contiguous 48 States will designate a component headquarters to: (1) Administer and insure the uniform application and enforcement of the provisions of this part and applicable supplemental DoD Instructions as implemented by the appropriate Military Departmental regulations. (2) Issue one controlling regulation for the Unified Command area suitably composed for dual distribution to the command and to businesses requesting such guidance. (3) Consolidate the administration of this part and procedures governing the granting, retention, and suspension of accreditation privileges for commercial enterprises and agents throughout the unified command. (b) Under the direction, authority and control of the Secretary of Defense, the Assistant Secretary of Defense (Manpower) (ASD (M)) shall have the responsibility for the administration of this part to include the issuance of appropriate DoD Instructions governing personal commercial affairs including the solicitation and sale of goods, services, or commodities on Defense installations including controlled housing areas (i.e., insurance, mutual funds shares and investment securities companies, clearance and accreditation of agents and businesses qualifying for solicitation on United States installations in foreign countries, etc.). § 43.11 Implementation. Within sixty (60) days from the date of publication of this part in the FEDERAL REGISTER the Secretaries of the Military Departments shall submit to the ASD (M) for approval their proposed implementing regulations. APPENDIX A To be used by: 1. Sellers financing their own sales. 2. Lending institutions having any financial ties with, or right of recourse against the seller of the service or goods to which the contract relates. PART I 1. Description of property or service acquired or to be acquired: 2. Seller's name and address: 3. Name and address of creditor to whom the note or obligation is or will be payable if other than the seller: 4. Does the creditor have any financial ties with the seller or any right of recourse against the seller in event of default on the obligation (yes) (no) 5. (a) Quoted cash price of goods or services (d) Add ancillary charges, such as taxes and auto license fees, from which Total ancillary charges: (e) Cash delivered price (c plus d) (f) Less trade-in allowance (g) Net cash to be financed (e minus f) (h) Add finance charges, include here all charges including commissions which inure to the benefit of the seller or creditor or entities in which either have a financial interest and all other charges which would not be made if this were a cash purchase: Charge for Amount Total finance charges (1) Total time price (g plus h) PART II-STANDARDS OF FAIRNESS The items set forth in Column I are limitations which the Department of Defense considers desirable to insure fairness in contracts of this type obligating military members for the payment of money. Column II signifies the creditors willingness, or lack thereof, to have such limitations apply to the subject contract. These limitations do not extend any provision of the contract. Column I Provisions Desirable to Insure Fairness Column II Complete by filling in "shall apply" or "shall not apply" 1. No finance charge made shall be in excess of the charge which 1. 2. No claim shall be made for an attorney's fee unless suit is 2. 3. No deficiency shall be claimed if the security for the debt is 3. 4. Defenses which the debtor may have against the original lender 4. 5. The debtor shall have the right to remove any security for the 5. Column I-Continued Provisions Desirable to Insure Fairness-Continued 3. The debtor shall have the right to remove any personal property 3. 4. No late charge in excess of 5% of the late payment shall be 4. Column II Complete by filling in "shall apply" or "shall not apply" 5. There shall be no penalty for prepayment and in the event 5. 6. No charge shall be made as a part of the cash delivered price or PART III 6. I certify that I fully examined PARTS I and II of this form and that each blank in PART I was completed or marked "N/A", if not applicable, and that PART II was completed by marking each blank "shall apply" or "shall not apply", both parts being completed prior to my signing this form and prior to my signing the contractual obligation or depositing money or property with the seller which would have been subject to forfeiture had I failed to sign a contractual obligation. (a) (If executed prior to extension of credit use this section) I certify that each blank in PART I was completed or marked not applicable and each blank in PART II was completed with the words "shall apply" or "shall not apply" and PART III of the form was signed by the debtor prior to the time the debtor incurred the contractual obligation to which this form relates and prior to the time he deposited any money or property which would have been subject to forfeiture had he failed to execute the contractual obligation. Charges reported in PART I and the limitations of PART II which are marked "shall apply" serve to limit any greater charges or less favorable provisions stated in the contract. Creditor (b) (If completed after extension of credit complete this section) Execution of this section shall constitute an offer to compromise, pursuant to which all of the limitations of PART II shall apply to the contractual obligation reported in PART I including all payments heretofore made by the debtor on such contractual obligation, the date and amount of each such payment, balance due on the contract and balance currently due without acceleration being calculated subject to the limitations of the compromise and set forth below. This compromise offer may be revoked by written notice to the debtor prior to the time the debtor has made payments under the compromise in excess of 1/10th of the amount set forth below as currently due and owing without acceleration. Thereafter this offer may only be revoked if the debtor is discharged from the service under conditions other than honorable for reasons related to his failure to pay his just obligations. If revoked, any payments under the compromise shall be treated as payments on the principal contract and this compromise offer shall be of no effect whatever. Creditor promise shall be treated as payments on the principal contract and this compromise offer shall be of no effect whatever. Seller or Creditor Payments on contract received prior to execution of this compromise: Balance due on contract computed under limitations of the compromise: $Balance currently due and owing without acceleration computed under the $-. limitations of the compromise: Accredited agents and companies instruction: Agents and companies that have applied for and received accreditation for on-base solicitation as a condition of accreditation are required to complete section b of PART IV prior to processing of a complaint through military channels even though such agent or company had previously completed section a of PART IV. To be used by: APPENDIX B 1. Lending institutions having no financial ties with, or right of recourse against the seller of the service or goods to which the contract relates. 2. Lending institutions on an obligation secured by property which the debtor has owned and possessed for less than 60 days prior to the loan. PART I 1. Description of property or service acquired or to be acquired: 2. Seller's name and address: 3. Name and address of creditor to whom the note or obligation is or will be payable if other than the seller: 4. Does the creditor have any financial ties with the seller or any right of recourse against the seller in event of default on the obligation 5. (a) Quoted cash price of goods or services (Yes) (No) (b) Less discount customarily allowed cash purchases (c) Net cash price of goods or services (a minus b) (d) Add ancillary charges, such as taxes and auto license fees, from which the seller or creditor receives no benefit and which are not related to the extension of credit. If insurance premiums are included here, exclude any commission or fee earned on the insurance by the seller, creditor or any insurer in which seller or creditor have a financial interest. Itemize ancillary charges: Total ancillary charges: (e) Cash delivered price (c plus d) (f) Less trade-in allowance (g) Net cash price to be financed (e minus f) (h) Add finance charges, include here all charges including commissions $. which inure to the benefit of the seller or creditor or entities in which either have a financial interest and all other charges which would not be made if this were a cash purchase: Charge for Amount Total finance charges (1) Total time price (g plus h) PART II-STANDARDS OF FAIRNESS The items set forth in Column I are limitations which the Department of Defense considers desirable to insure fairness in contracts of this type obligating military members for the payment of money. Column II signifies the creditors willingness, or lack thereof, to have |