DoD passes new policy on allotments Published Dec. 19, 2014 By By Airman 1st Class Kedesha Pennant 7th Bomb Wing Public Affairs DYESS AIR FORCE BASE, Texas -- Beginning Jan. 1, military service members will no longer be able to use allotments to purchase, lease or rent personal property. According to the Department of Defense, the policy change prohibits starting new allotments to purchase or finance vehicles, appliances, household goods, electronics or other consumer items that are tangible and movable. However, existing allotments will not be affected. Allotments will remain permissible for savings accounts, support for dependents, insurance premiums, mortgage or rent payments and investments. The new regulation does not affect military retirees or DoD civilian employees. "There are many dishonest companies that will give you a loan or payment they know you can't afford," said Master Sgt. April Fallecker, 7th Comptroller Squadron financial services chief. "This policy was updated to protect our service members from the predatory practices of these businesses." According to the DoD, the purpose of the policy change was to remove one aspect that greedy lenders use to con service members who finance purchases through the allotment system. "There have been multiple instances where the DoD felt service members were taken advantage of by commercial lenders, in which they decided to take action," Fallecker said. The change is intended to significantly improve service member protections, while not reducing the flexibility to use allotments for safer purposes. "Don't take changes like this lightly," Fallecker said. "We should take notice, do our own research and educate ourselves on these businesses that target service members," Fallecker said. The new allotment policy will be incorporated in the next published update of the DoD Financial Management Regulation volume 7A, chapters 40 and 42. For more information about the changes being made to allotments, contact the 7th Comptroller Squadron at (325) 696-4129.