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Member
mba1983
Posts: 9
Registered: ‎02-10-2013
0

GW to government advice?

I’m in what I would think is a fairly unique situation so I’m not sure if anyone has advice or not, but I would like to hear some feedback and thoughts.

 

In 2006 I was released from the USMC active duty with a reenlistment code 1A (best you can have). I started attending school during the coming fall and spring semester. During this time I was contacted by multiple recruiters asking if I missed the corps and wanted to come back. Since I was still under contract (inactive reserve) I had the option to voluntary activate myself. During the summer break I decided with no job and no GI Bill money coming in that activating myself was a good choice for some extra money. It was worked out so that I could do a full year worth of reserve drills (one weekend a month, two weeks a year) in a two month time frame.  

During these two months I was assigned to a unit and all benefits were applied as if I was in the reserves. This included SGLI (life insurance) which is something they charge us for each month which is not a big deal when it’s just coming out of your check.  However, in 2010 I found out that someone never turned this benefit off after I left and the charges have been adding up.

 

At the time I decided the best way to deal with this stress was to just ignore it. As of right now my credit report shows:

 

CO: MARINE CORP FINANCE CTR

STATUS: Paid, Closed.

DATE OPENED: 02/2010

LAST REPORTED DATE: 04/2011

CREDIT LIMIT: $697

CREDITOR’S STATEMENT: Account closed at credit grantor’s request.

 

I honestly have no idea why this shows paid/closed as I never made a payment on it. It is possible that they garnished my tax return but I didn’t notice that if they did (and I really feel like I would have noticed if they did). I also (over the phone) contested these charges stating that I was not responsible since I had to idea I was being charged for it, but never heard anything back.

 

Any idea the best way to find out what the status of this account without flagging the government to investigate if I currently own them money? Any contacts for a GW letter?

Moderator Emeritus
llecs
Posts: 32,881
Registered: ‎08-04-2007
0

Re: GW to government advice?

How is it reporting to your CRs? What's the negative aspect to it? Based on what you posted I don't see it as a negative, but there maybe some underlying issues that can be native like payment history, comments, etc.

Member
mba1983
Posts: 9
Registered: ‎02-10-2013
0

Re: GW to government advice?

I started this threard going off the information from my EQ report but after looking at TransUnion it seems like I might still owe this money. Here is what TransUnion list this account as. Any ideas why one report would show a $0 balance and the other saying $730 as past due?

 

 

Condition: Derogatory

Past Due Balance: $730

High Balance: $697

Type: Government overpayment

Pay Status: Collection/Chargeoff

Comment: Collection Account Canceled by credit grantor 

Moderator
guiness56
Posts: 22,408
Registered: ‎01-17-2008
0

Re: GW to government advice?

SGLI is automatically started and stops 120 days after you leave the service.  It is something you have no control over.  Therefore, they cannot charge you for it.

 

And if it is an overpayment that means YOU were overpaid somewhere.  SGLI is a deduction. 

 

Something else is going on.

 

Member
mba1983
Posts: 9
Registered: ‎02-10-2013
0

Re: GW to government advice?

guiness thanks for the reply.

 

You sound like you have some experience with this sort of thing so let me toss what I think happened and you can tell me if it is possible or not.

I assume you know that all military sign an eight year contract just some have more active/reserve time than others. I signed up for four years active and four years inactive ready reserve(nine months DEP). It was during my inactive reserve time that I activated myself for the summer. After I completed a full years worth of reserve drill that summer I came home and thought nothing more of it. It wasn't until my full contract (two years after my summer drills and eight years from time  signed my contact) that they contacted me saying that I owed money for the SGLI.

 

Since I was technically still in the service could they keep charging me for this? Or is this something that should have ended 120 after my summer drills?

 

Moderator
guiness56
Posts: 22,408
Registered: ‎01-17-2008
0

Re: GW to government advice?

I have some experience yes.  I recently retired after 25 years in the Air Force lol.

 

You are only eligilble for full time SGLI if you are Active Duty or a drilling reservist/guardsman scheduled for 12 months of drill/AT.  (These are the only 2 that matter in your case). The coverage is automatic.

 

The coverage also stops automatically when those 2 no longer apply.

 

Since you did your full 12 months over a shorter period of time (and they agreed to it) the coverage should have stopped when you completed your last drill.  Once you complete your drills for the year, you are not eligible to do any more. This is mandated by law.  The only way you can complete anything above and beyond that would be on mandays or orders.

 

In an Air Force guard unit, you have an MPF or personnel center, separate from your unit, that does your orders, has a finance office, etc.  I am not sure how it is in the USMC.  At any rate, your unit should have notified finance to stop your SGLI. 

 

Since that didn't happen, they are saying you owe money. 

 

Are you still affilliated with your unit?  Have any contacts?

 

As for the 120 days, that is for Active Duty.

 

 

 

 

Member
mba1983
Posts: 9
Registered: ‎02-10-2013
0

Re: GW to government advice?

It was such a long time ago (2008), and I was with my unit such a short time I dont have any contacts. I still have some friends that are in the service but none of them are still with my original unit. Know of any veteran support groups that can help with a situation like this?

 

My credit report list an address and phone number for DFAS. Should I call them?

DEFENSE FIN & ACCT SVCE DFAS KC 6760 IRVINGTO
DENVER , CO 80279
(800) 962-0648 
Moderator
guiness56
Posts: 22,408
Registered: ‎01-17-2008
0

Re: GW to government advice?

Funny but during the night I woke up and started thinking about this thread.  What I concluded was the fact that you completed a 12 month stint in a couple of months.  With that said, they could be totally justified in taking the money because of the 12 month requirement. Provided you didn't pay a years worth of SGLI up front.  However it would have only been for the remaining months which does not add up to $600.

 

You can contact DFAS and see what they have to say.

Regular Contributor
HindSight_20_20
Posts: 177
Registered: ‎06-03-2009
0

Re: GW to government advice?


guiness56 wrote:

Funny but during the night I woke up and started thinking about this thread.  What I concluded was the fact that you completed a 12 month stint in a couple of months.  With that said, they could be totally justified in taking the money because of the 12 month requirement. Provided you didn't pay a years worth of SGLI up front.  However it would have only been for the remaining months which does not add up to $600.

 

You can contact DFAS and see what they have to say.


+1 Bingo!

The system could care less and doesn't know that you've completed this requirement early - it just takes into account that an 'active' member is reported every month for 12 months.  If this is not happening then it assumes you've not completed the manual time, thus charging you the remainder (at the USMC /AR daily computation).

 

Your S-1 should've been on top of this BEFORE you started your stint.  Its fixable but as guiness says, you'll have to dance with DEFAS on it.

 

 

________________________________________________________________________________________________
I’ve found that I can "charge" WHATEVER I want…. Just not all at THE SAME TIME!*Last CC App 07/2010*
Member
mba1983
Posts: 9
Registered: ‎02-10-2013
0

Re: GW to government advice?

Thanks for all the help guys! I will contact DFAS and update any progress I am able to make or lack of.


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