Groups ask Pentagon to review new AAFES card

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Groups ask Pentagon to review new AAFES card
By Teri Weaver, Stars and Stripes
Pacific edition, Monday, May 26, 2008

TOKYO — Two national financial groups have asked the Pentagon’s chief financial officer to review the issuance of a new credit card from AAFES, saying the card violates Pentagon banking and financial policies.

The request claims that the Military Star Rewards MasterCard, run by AAFES and JP Morgan Chase, violates rules that limit the number of banks on military bases, according to the National Association of Federal Credit Unions and the Association of Military Banks of America.

Both groups also claim the Army and Air Force Exchange Service is marketing an off-base financial business, a violation of Pentagon policy when on-base banks or credit unions exist.

AAFES declined multiple requests for interviews through Lt. Col. William Thurmond, the chief of corporate communications at AAFES’ headquarters in Dallas. Instead, Thurmond issued a statement saying the new rewards card is an extension of an existing product the exchange has offered for more than two decades.

"Since 1987 AAFES has offered both an Affinity MasterCard and Military Star Card," Thurmond wrote in response to questions. "AAFES is simply combining these lines of credits into one simple, convenient piece of plastic. We look forward to resolving any misunderstanding regarding the issuance of this product."


Rest of article at: http://www.stripes.com/article.asp?section=104&article=55091