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AAFES improves DPP



Article  
AAFES improves DPP
[11/9/2004]

Source: Army Family Publication

The Army and Air Force Exchange Service has announced a series of changes that will improve the in-house exchange credit program known as the Deferred Payment Plan (DPP).

Beginning in the summer of 1998, instead of deducting two-thirds available pay to pay delinquent accounts, the program will deduct only the delinquent amount for the first two unresolved delinquencies.

A third unresolved delinquency will result in the original two-thirds deduction of pay.

"We’re doing this to reduce the hardship that some DPP customers, experiencing financial difficulty, are encountering," said AAFES DPP Liaison Officer, Lt. Col. Keith A. Howell,

A new software may be implemented soon called "Vision Plus." It will provide different interest rates and multiple credit plans to DPP’s best customers.

"The new program will allow for more timely credit approval and we know how important time is to our customers," said Howell.

In February 1996, AAFES implemented a new system of providing credit to customers. Instead of giving credit based on rank, they moved to giving credit based on past credit history.

Through this system, AAFES was able to bring the delinquency rate down from 9.2 percent in 1996 to 7.1 percent in 1997.

"We want to be a world-class credit program that is competitive and comparable to any credit program out there," Howell said.

Last year DPP contributed more than $22 million in dividends to Morale, Welfare, and Recreation programs.

At the same time, AAFES paid $18.4 million in commercial credit card processing fees to Visa, Master Card, American Express and Discover for purchases made at AAFES facilities.

If those same purchases on credit had been made through DPP, which has no external processing fees, approximately half of the money paid for commercial credit card processing would have gone to MWR programs instead.

"DPP is an important consideration for all AAFES customers when choosing a source of credit for purchases from the Exchange," said Howell.

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