R 170553Z SEP 01 ZYW
FM CMC WASHINGTON DC//RF/MP//
TO MARADMIN
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UNCLAS //N04600//
MARADMIN 434/01
MSGID/GENADMIN/CMC WASHINGTON DC/RF//
SUBJ/IMPLEMENTATION OF CHANGES TO THE GOVERNMENT TRAVEL CHARGE CARD
/PROGRAM (GTCCP) TO REDUCE DELINQUENCY RATES//
REF/A/IS UNDER SECRETARY/OF DEFENSE (COMPTROLLER) MEMO/-/14JUN01
/NOTAL//
REF/B/DOD FINANCIAL/MANAGEMENT REGULATION VOLUME 9/-/CHAPTER 3//
NARR/REF A ANNOUNCED CHANGES TO THE DOD TRAVEL CARD POLICIES TO
REDUCE DELINQUENCY RATES. REF B IS THE DOD POLICY ON THE
GOVERNMENT TRAVEL CHARGE CARD PROGRAM//
POC/SOKOLY MAJ/TEL: DSN 224-4981/82/HQMC RF/STOKER GYSGT
/TEL:DSN 224-4981/82/ HQMC RF//
RMKS/1. ACCOUNT DELINQUENCY CONTINUES TO PLAGUE THE GOVERMENT TRAVEL
CHARGE CARD PROGRAM (GTCCP). SINCE THE GTCCP BEGAN IN NOV 98, BANK
OF AMERICA (BOA) HAS BEEN FORCED TO WRITE OFF $57M IN LOSSES FOR DOD.
THAT AMOUNT INCLUDES 2,308 MARINE CORPS ACCOUNTS WORTH $2.8M. WHILE
THE MARINE CORPS HAS TURNED THE CORNER ON REDUCING DELINQUENCY, WE
STILL HAVE A LONG WAY TO GO TO COMPLETELY RESOLVE PROBLEMS WITH THE
GTCCP. TO COUNTER NEGATIVE TRENDS THE FOLLOWING PROGRAM AND
PROCEDURAL CHANGES ARE BEING IMPLEMENTED AT THE DOD LEVEL. ENGAGED
COMMANDERS, PROACTIVE UNIT APCS AND RESPONSIBLE CARDHOLDERS ARE THE
CRITICAL COMPONENTS FOR A SUCCESSFULL GTCC PROGRAM.
2. AS ANNOUNCED IN REF A, ON 11 APR 01 DOD AGREED TO CHANGES
PROPOSED BY BOA. CARDHOLDERS SHOULD HAVE RECEIVED A NEW CARDHOLDER
AGREEMENT REFLECTING THESE CHANGES. CARD USE IS MANDATED BY
STATUTE, AND UNLESS EXEMPTED UNDER THE PROVISIONS CONTAINED IN REF
B, CARDHOLDERS CANNOT DECLINE THE TERMS OF THE NEW CARDHOLDER
AGREEMENT. THE FOLLOWING CHANGES WERE EFFECTIVE 10 AUG 01:
A. THE LATE FEE INCREASED FROM $20 AT 120 DAYS PAST DUE TO $29
AT 75 DAYS PAST DUE.
B. THE NON-SUFFICIENT FUNDS FEE FOR DISHONORED CHECKS INCREASED
FROM $20 TO $29.
C. ATM CASH ADVANCE FEE INCREASED FROM 1.9% TO 3% OR $2
WHICHEVER IS GREATER.
D. A $20 FEE WILL BE ASSESSED FOR EXPEDITED DELIVERY OF GTCC.
THE FEE WILL NOT APPLY TO EXPEDITED DELIVERY OF EMERGENCY
REPLACEMENTS FOR CARDS LOST, STOLEN, OR OTHERWISE UNUSABLE BY
TRAVELERS WHO ARE IN A TRAVEL STATUS. THIS FEE IS A REIMBURSABLE
EXPENSE TO THE TRAVELER.
3. THE FOLLOWING CHANGES WILL COMMENCE PRIOR TO 31 DEC 01.
A. DECREASED CREDIT/ATM LIMITS WILL BE PHASED IN OVER A
SIX-MONTH PERIOD. WE EXPECT IMPLEMENTATION TO BEGIN PRIOR TO DEC
01, BUT NO FIRM DATE HAS BEEN ESTABLISHED. APC'S, WITH THE APPROVAL
OF THE TRAVELER'S SUPERVISOR, WILL BE ABLE TO RAISE ATM/CREDIT
LIMITS AS NECESSARY TO MEET MISSION REQUIREMENTS.
(1) STANDARD CARD ATM/CREDIT LIMITS WILL BE REDUCED
FROM THE CURRENT $500 ATM/$5000 CREDIT LIMIT TO $250 ATM/$2500
CREDIT LIMIT.
(2) RESTRICTED CARD ATM/CREDIT LIMITS WILL BE REDUCED
FROM THE CURRENT $200 ATM/$1250 CREDIT LIMIT TO $125 ATM/$1000
CREDIT LIMIT.
B. DOD WILL ESTABLISH PROCEDURES NLT 9 OCT 01 PER REF A, TO
IMPLEMENT SALARY OFFSET (INVOLUNTARY PAY CHECKAGE) FOR DELINQUENT
GTCC ACCOUNTS. BOA MAY SEEK SALARY OFFSET ONCE A GTCC ACCOUNT IS 90
DAYS PAST DUE AND FOR ACCOUNTS PREVIOUSLY WRITTEN OFF AS BAD DEBTS.
PUBLIC LAW 105-264 PROVIDES THE AUTHORITY FOR SALARY OFFSET.
C. DEFAULT SPLIT DISBURSEMENT WILL BE IMPLEMENTED.
(1) SPLIT DISBURSEMENT: TRAVELERS CAN DESIGNATE A
SPECIFIC AMOUNT OF THEIR TRAVEL SETTLEMENT TO BE SENT DIRECTLY TO BOA
TO PAY THEIR GTCC BILL.
(2) SPLIT DISBURSEMENT IS A BENEFIT FOR TRAVELERS. IF
APPROPRIATE AMOUNTS ARE SENT TO BOA, TRAVELERS DO NOT HAVE TO PAY BOA
THEMSELVES. SPLIT DISBURSEMENT ALSO SPEEDS PAYMENT TO BOA REDUCING
THE POTENTIAL FOR DELINQUENCY.
(3) DEFAULT SPLIT DISBURSEMENT: IF NO SPECIFIC AMOUNT
IS ENTERED ON THE TRAVEL CLAIM, THE PORTION OF THE TRAVEL SETTLEMENT
RELATED TO TRANSPORTATION, LODGING, AND RENTAL CAR WILL BE SENT TO
BOA AS A RESULT OF FINANCE/DISBURSING OFFICER ACTION. ANY REMAINING
PAYMENT WILL BE SENT TO THE TRAVELER.
4. THE FOLLOWING PROGRAM MANAGEMENT ACTIONS ARE EFFECTIVE
IMMEDIATELY:
A. COMMANDS MUST INCLUDE UNIT APCS AS PART OF THE UNIT
CHECK-IN/OUT PROCESS SO THAT PERSONNEL TRANSFERRING OR SEPARATING
CHECK-IN/OUT WITH THE UNIT APC. COMMANDS WILL MAKE EVERY EFFORT TO
RESOLVE DELINQUENCY ISSUES PRIOR TO CARDHOLDER TRANSFER/SEPARATION.
APCS MUST CLOSE GTCC ACCOUNTS FOR SEPARATING CARDHOLDERS.
B. APC'S MUST REVIEW DELINQUENCY REPORTS AFTER EACH MONTHLY
BILLING CYCLE WITH PARTICULAR ATTENTION TO ANY CARDHOLDERS
APPROACHING SEPARATION.
(1) THE HQMC GTCCP MANAGER (RFL-F) WILL CONTINUE TO
FORWARD A MONTHLY LIST TO EACH MAJOR COMMAND APC (HIERARCHY LEVEL
THREE) OF DELINQUENT CARDHOLDERS APPROACHING SEPARATION. AN
AUTOMATED PROGRAM WILL BE AVAILABLE FOR CORPS-WIDE USE DURING
OCT 01.
(2) APC'S MUST NOTIFY COMMANDERS AND CARDHOLDERS WHEN
A CARDHOLDER'S ACCOUNT APPROACHES 60, 90, AND 120 DAYS DUE.
(3) APC'S WILL NOTIFY APPLICABLE CARDHOLDERS WHENEVER
THEIR COMMANDERS ARE NOTIFIED THAT THE CARDHOLDER IS DELINQUENT IN
THE PAYMENT OF OUTSTANDING AMOUNT ON THEIR ACCOUNTS.
C. APC'S MUST USE THE MISSION CRITICAL DESIGNATION ONLY WHEN
A CARDHOLDER IS UNABLE TO OBTAIN A TRAVEL SETTLEMENT. MISSION
CRITICAL ACCOUNTS MUST BE CLOSELY MANAGED BY APC'S TO PREVENT
DELINQUENCY AND CHARGEOFF.
D. REQUEST FOR CREDIT INCREASES MUST BE APPROVED BY THE
TRAVELER'S SUPERVISOR BEFORE THE APC REQUESTS THE INCREASE FROM
BOA. CURRENT CREDIT LIMITS ARE USUALLY SUFFICIENT TO MEET THE TRAVEL
REQUIREMENT OF MOST MARINE CORPS TRAVELERS AND LIMIT THE RISK OF
CARDHOLDER ABUSE AND DELINQUENCY. THE APC MUST REVIEW THE CHARGE
HISTORY OF ANY CARDHOLDER REQUESTING A CREDIT INCREASE TO MAKE SURE
THERE IS NO PATTERN OF MISUSE AND THAT THE CREDIT INCREASE IS
WARRANTED. ATM CASH LIMIT INCREASES EXCEEDING $1,000 PER MONTHLY
BILLING CYCLE OR OVERALL CREDIT LIMITS GREATER THAN $10,000 PER
MONTHLY BILLING CYCLE MUST BE APPROVED BY THE HQMC (RFL-F) GTCCP
MANAGER.
E. APC'S MUST TAKE THE FOLLOWING ACTIONS TO REDUCE THE NUMBER
OF ACTIVE CARDS ISSUED TO INFREQUENT TRAVELERS. INFREQUENT
TRAVELERS TRAVEL TWO OR FEWER TIMES PER YEAR. INFREQUENT TRAVELERS
ARE NOT REQUIRED TO USE THE GTCC.
(1) REVIEW CARDHOLDER LISTINGS AND DEACTIVATE OR
CANCEL ACCOUNTS ON ALL INFREQUENT TRAVELERS. DEACTIVATED ACCOUNTS
CAN BE ACTIVATED BY UNIT APCS FOR OFFICIAL TRAVEL USING THE BOA
INTERNET BASED EAGLE SYSTEM OR CONTACTING BOA GOVERNMENT CARD
SERVICES AT 1-800-558-0548.
(2) CLOSE CARDHOLDER ACCOUNTS IF THE CARDHOLDER HAS NO
FUTURE REQUIREMENTS TO TRAVEL.
(3) APC'S MUST NOTIFY CARDHOLDERS OF CARD
DEACTIVATION/CANCELLATION.
5. THE CHANGES ABOVE APPLY TO ALL MARINE CORPS CARDHOLDERS INCLUDING
CIVILIANS. APPROPRIATE NOTIFICATION OF THESE CHANGES HAS BEEN
SUBMITTED TO CIVILIAN BARGAINING UNITS AND WE ANTICIPATE THAT ALL
BARGAINING OBLIGATIONS WILL BE COMPLETED PRIOR TO IMPLEMENTATION OF
THE CHANGES.
6. HQMC (RFL-F) WILL PUBLISH FURTHER IMPLEMENTATION POLICY/
PROCEDURES UPON RECEIPT FROM DOD AND BOA.
//
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