Commentary

April 4, 2014

Military Assistance Corporation ends military allotments processing

If you are currently using a military allotment to repay a loan, be aware that one of the largest allotment processors, Military Assistance Corporation, ended allotment processing on March 31.

This is only for allotments used to pay commercial/consumer loans (e.g. loans for furniture or electronics). This will not affect MAC allotments for housing.

If you were using MAC’s service, make alternative payment arrangements for the loan that was previously paid by allotment. Contact your creditor (the company that sold you the product or made the loan) immediately.

Frequently asked questions

Q: I have a military allotment, how do I know who it is with?

A: Check to see if the allotment/bill pay service is provided by MAC. The allotment may be referred to as “MAC Ease bill payment service,” and is likely going to Citizens Union Bank.

Q: If I have a MAC allotment, what will happen to it?

A: MAC stopped accepting the allotment amount from your payroll processor as of March 31. Your payroll processor will then likely route the allotment amount back to you via your regular pay. As a result, you may see a bump in your pay – this is likely due to your allotment coming back to you instead of being processed by MAC as it normally would. Remember: this money was previously allocated by you to pay a bill – it’s not just “extra” money. You must make alternate arrangements to continuing paying the bill.

Q: How should I pay instead?

A: Talk to your creditor, but you can usually arrange for an alternative automatic payment arrangement, like an ACH payment from your bank or credit union account. Setting up a recurring ACH allows the creditor to pull the money owed each month by using your bank account and routing number. Alternatively, you can ask the bank or credit union to send the money to your creditor electronically by using an online bill pay service.

Q: What else do I need to do?

A: Log onto MyPay and turn off the allotment(s) you had going to MAC/Citizens Union.

Q: How do I contact MAC?

A: The Web site https://www.allotment.net/ contains information about this issue; but you do not need to contact MAC unless you need help identifying your creditor.




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