In response to letter in March 24th, 2011, Stars and Stripes paper entitled “On-post exchange rates worse.” CLICK HERE TO VIEW
While I appreciate the problem of military banking facilites ripping off their customers being brought to light I cannot help be frustrated this abuse from Department of Defense (DoD) sponsored banking facilities has gone on for so long. Here in the United Kingdom an E-5 with dependents pays on average $55 extra a month in rent, totaling $660 annually just in rent alone if using the military banking facility. Factoring in the utility allowance annually that E-5 is paying nearly $1,000 more than they should if using these DoD banks. Making matters worse, these same banks (Bank of America in the UK) offer the worst interest rates on loans and even worse rates on savings and certificates of deposit. On RAF Lakenheath (RAFL) alone the bank makes over $6 million dollars annually off this lofty exchange rate in their favor and return none of it to the customers or community. The question is why does the DoD standby and let this abuse happen?
The DoD needs to overhaul its overseas banking system and make the business fair for their customers stationed overseas. These is no reason that there should be such a difference in exchanging your money on base than off, if anything the on base rate should be better for the consumer than what the local banks are charging off base. I could only imagine how our MWR fund would benefit from an extra $6 million here at RAFL or even how that struggling E-5’s family could benefit from an extra $1,000 a year in his/her pockets. More needs to be brought to light about the dealings of military banking facilities overseas and where exactly the exuberant amount money made from their criminal like exchange rate is going towards.
In the meantime supervisors should be educating their subordinates about financial dealing with their local military banking facilities. Our Airmen, Soldiers, Sailors, and Marines, deserve better than this and the DoD owes it to us that fair and ethical business practices are conducted with our money overseas. A monopoly provided by the DoD does not give the right to charge us the maximum rate possible, yet the DoD allows this to continue and it is truly shameful.
