CAF Debt Solution Loan - replace CFPAF [Merged]

[tijutk]

I was told that i could get a loan upto $5K from the forces as i am currently serving as a reg member in the forces.If i could get more information in regards to this matter that would be appreciated. Thanks.


**Staff edit:  Made the title reflect the topic  ***

 

[Pusser]

What you may be asking for is a "CFPAF Loan" from the Canadian Forces Personnel Assistance Fund.  Check out:  https://www.cfmws.com/en/SupportOurTroops/OurFunds/CFPAF/Pages/default.aspx

 

[garb811]

Point to note, CFPAF as we used to know it is not in existence anymore, although they are seemingly maintaining certain websites for legacy issues.

The Support Our Troops Fund is the official program providing financial support and assistance to Canadian Armed Forces (CAF) members, veterans and their respective families.  It is funded through individual and corporate donations, proceeds from third party events and Yellow Ribbon merchandise, and contributions by external organizations.  ​


​In January 2016, Military Families Fund and Canadian Forces Personnel Assistance Fund (CFPAF) amalgamated into the Support Our Troops Fund to provide a single official source of charitable support to the CAF Community.

The new program website is found here:

Support Our Troops Fund

Personally, I'm not a fan of this changes which were seemingly done very much on the hush hush.

 

[Pusser]

Interesting.  I was not aware of that change.

The RCN Benevolent Fund, however, still exists (which has many similarities to what CFPAF used to be), but it is limited to Navy personnel.

 

[kratz]

I received this email last month. The new CAF Debt Solution Loan product replaces the old CFPAF loans we used to know.

1670 – 1 (SVP Commercial Svcs)

July 24, 2018

SISIP Financial Introduces the
CAF Debt Solution Loan product

1. In order to respond to the financial challenges faced by some Canadian Armed Forces (CAF) families, I am excited to announce that SISIP Financial and the Bank of Montreal (BMO) are jointly introducing a new CAF Debt Solution Loan product.

2. The launch of this product is in direct response to a recent survey conducted by
Director General Military Personnel Research and Analysis, which revealed that CAF families are carrying higher than average debt levels. Many of these debts (credit cards, pay day loans, etc.) attract high interest rates. Roughly one – third of members who responded to the survey indicated having over $10,000 in consumer debt. With this increased debt, combined with high interest rate loans, many CAF families are under financial stress.

3. With this new Debt Solution Loan, CAF families will be able to access loans of up to $20,000 at a cost of Prime + 3%  (or roughly 6.5% at today’s rates), allowing them to consolidate their high interest household debt, make manageable monthly payments and pay off those debts.

4. CAF members who wish to apply for a Debt Solution Loan offered by BMO as part of the Canadian Defence Community Banking program, will need to make an appointment with a SISIP Financial Counsellor. For more information about the new CAF Debt Solution product and a list of all SISIP Financial locations visit SISIP.com



Commodore Sean N. Cantelon
Commodore
Managing Director Non-Public Property

 

[OldSolduer]

Years ago a RSM I served with stated if any troops wanted. CFPAF loan, C&P and financial counseling would follow.
Just a diversion....discuss....

 

[garb811]

Years ago a RSM I served with stated if any troops wanted. CFPAF loan, C&P and financial counseling would follow.
Just a diversion....discuss....

Good way to encourage people to keep covering the problem up while they dig themselves deeper and deeper in...

 

[PuckChaser]

Years ago a RSM I served with stated if any troops wanted. CFPAF loan, C&P and financial counseling would follow.

I wonder what the CDS, especially the current CDS, would say when the member grieved being put on C&P because they got a CFPAF loan to pay for their kids braces or college education...

 

[Pusser]

Years ago a RSM I served with stated if any troops wanted. CFPAF loan, C&P and financial counseling would follow.
Just a diversion....discuss....

Grossly unprofessional, uninformed #$%&wad who should never have been in that position in the first place as he obviously had few, if any, leadership qualities.

 

[Starlight1]

Long ago when I was an ROTP OCdt in civ U, i used to take one yearly to pay for my residence fees, which were due in 2 payments, Aug (on confirmation) and Jan.  Not so easy when at that time we were paid perhaps $600 monthly...  Unfortunate if this program has ceased.

 

[brihard]

Years ago a RSM I served with stated if any troops wanted. CFPAF loan, C&P and financial counseling would follow.
Just a diversion....discuss....

Idiotic and unprofessional. Not much to discuss, really.

 

[Humphrey Bogart]

I received this email last month. The new CAF Debt Solution Loan product replaces the old CFPAF loans we used to know.

That's a pretty good interest rate. TBH, I'm not sure how I feel about this as I'm not a believer in throwing more money at people who don't know how to manage it in the first place.  I wonder how many people would take this and simply use it and blow the money?  I wonder what the conditions are? 

I've seen some people do some pretty boneheaded things like buy a motorbike and put it entirely on a Credit Card, which when you think about the interest rate, makes zero sense!

 

[kratz]

3. With this new Debt Solution Loan, CAF families will be able to access loans of up to $20,000 at a cost of Prime + 3%  (or roughly 6.5% at today’s rates), allowing them to consolidate their high interest household debt, make manageable monthly payments and pay off those debts.

4. CAF members who wish to apply for a Debt Solution Loan offered by BMO as part of the Canadian Defence Community Banking program, will need to make an appointment with a SISIP Financial Counsellor. For more information about the new CAF Debt Solution product and a list of all SISIP Financial locations visit SISIP.com

If I understand the highlighted parts, this solution is debt consolidation program. It's too new to tell what hoops the member is required to go through with the SISIP Financial counsellor.

At bare minimum, this loan is not aimed at being "free" money for members to dig into worse debt. What criteria do banks have for debt consolidation? I think this will be similar,
with a more favourable rate and easier to access for CAF members.

 

[captloadie]

Is this really a better product than a CFPAF loan though? What was the interest rate on the old CFPAF loans? Were they not also automatically deducted from your pay over a fixed period of time? While consolidating debt to a lower interest rate product is smart financially, the way the product is being advertised seems like the CAF has walked away from providing financial guidance to its members and turned it over to SISIP and BMO. It also seems that a member can do this without engaging the CoC, thus hiding what could be significant issues the member is facing.

 

[CountDC]

From past discussions years ago on the financial counselling with them the deal was several meetings with the counsellor providing them with your bank statements so they could see what went in and out.  They produced a plan that you were required to adhere to and the loan payments were taken directly off your pay. 

As for the RSM - he may have been passing on the CO's policy in regards to C&P.  Don't know how they would accomplish this though as you didn't have to tell anyone you were applying for the loan if you went direct to SISIP. If it was for debt relief SISIP did have a policy of financial counselling so the RSM may have been aware and was merely passing it on.

The only really new thing I see here is that BMO is now linked in and perhaps an interest rate that wasn't there in the past.