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Congressman David Scott (D-GA) voted to crack down on the predatory sales tactics of firms marketing high-cost and outdated investments to young recruits on military bases. The measure, the Military Personnel Financial Services Protection Act (HR 458), passed the House Tuesday by 405-2 after the predatory sales practices of insurance agents—many which were former military personnel—on military bases were first exposed by a series of New York Times reports last summer. The Military Personnel Financial Services Protection Act bans the sale of so-called contractual mutual funds, an investment that nearly disappeared from the civilian market due to steep sales commissions in the buyer’s first years of contributions. The bill also authorizes state insurance regulators to oversee insurance sales on military installations, and would create a list of individuals banned from doing business on military bases. “When this issue first came to light last summer, I was shocked and disgusted that military commanders had colluded with certain shady insurance agents to take advantage of young recruits who were training to defend our country. It was even more scandalous to learn that this scheme had apparently been going on for years and I called for the Defense Department to account for why these agents were repeatedly allowed onto bases. What message does it send when our soldiers are dedicating their lives to protect our nation and yet are being robbed and exploited by the very people they are trained to trust? I’m glad we passed this bill to put a stop to this abuse,” said Congressman Scott. The Military Personnel Financial Services Protection Act was sponsored by Rep. Geoff Davis, R-KY, after the House Financial Services Committee approved the bill by voice vote in March. The House passed a similar version of the bill last October with broad support on a 396-2 vote. That measure stalled in the Senate, which did not take up the issue before the 108th Congress ended last December. H.R. 458 now heads to the Senate for consideration. ###