businesses quote interest rates plus other charges in a way that conceals the actual figures behind a mask of confusing language. That results in people being unaware of the total cost of their loans or installment purchases. When you borrow or buy something “on time,” you should keep your eyes open for extra charges. Such charges are additions to the interest charge for the use of the money. Some of these additional charges include credit life insurance, fees for credit investigations, loan-handling fees, and health and accident insurance. Often the down payment and the monthly payments are the only figures stated. Advise your personnel to ask for the total charges in writing, including early repayment penalties and monthly rates. If they do not receive the amount in writing, they can figure it themselves.  First,  they  should  find  the  total amount they will pay for the loan or the purchase. They should then subtract the amount they will actually receive or the actual price of the goods from the total cost. The difference shows the total cost of credit. Taking the time to get the facts pays off. Indebtedness The Navy expects its personnel to pay their debts in a proper and timely manner. However, enforcement of the private debts of personnel falls under the control of civil authorities. You do not have the authority to arbitrate claims or controversies about the private financial debts of your personnel.    You also do not have the authority to act as an agent or collector for a creditor. Your job is to encourage your people to conduct their financial affairs in a way that reflects credit upon themselves and the Navy. From start to final settlement, only the creditor and the debtor are responsible for the debtor’s financial obligations. You may only help creditors to a limited extent when it involves one of your people. Your authority extends only to referring correspondence to persons involved and advising them to make their intentions known to the creditor. However, you do have authority to act in situations of nonpayment of legal debts by your people. In such situations, you should counsel enlisted persons about the provisions for discharge for misconduct. Follow the procedures in the  Naval  Military  Personnel  Manual, NAVPERS 15506, article 6210140. Law  prohibits  debt  collectors  (collection agencies) from contacting a third party, such as a commanding officer or division officer, to help collect a debt. The only exceptions are when the collector has a court order or the prior consent of the debtor. The law defines the classes of people prohibited from contacting you. However, persons or firms collecting on their own behalf are exempt from such restrictions. You should refer correspondence from such persons or firms to the person involved. You should courteously refuse requests to furnish information about the personal credit rating of one of your people. Navy policy limits any  replies  to  verification  of  the  following information: • The person’s membership in the Navy • The person’s station address • A statement of the person’s basic pay BE SURE YOU UNDERSTAND WHO IN YOUR  COMMAND  HAS  THE  AUTHORITY TO  PROVIDE  THIS  INFORMATION—IT MAY NOT BE YOU. FAMILY SERVICE CENTERS As the leader of your enlisted personnel, you should be aware of those people and organiza- tions who can help your people. One of those organizations is the Family Service Center (FSC). The overall mission of FSCs is to improve the lives of Navy personnel. FSCs provide informa- tion, resources, and services that support and enrich the lives of Navy personnel and their families. FSCs serve as the focal point for existing family and personal support and assistance programs. The purpose of the centers is not to duplicate the services provided by other Navy programs, systems, or organizations. However, they offer information and referral on a full range  of  family-related  programs,  services, and resources within the Navy and civilian communities.  The  centers  support  Navy-  and command-sponsored  efforts,  such  as  the  om- budsman program, wives organizations, sponsor programs,  and  predeployment  briefings.  They provide elected services that may differ from center to center. 4-16