Mr. Carl W. S. Chun | Director | |
Mr. Robert J. McGowan | Analyst |
Ms. Joann Langston | Chairperson | |
Mr. Thomas B. Redfern, III | Member | |
Mr. Roger W. Able | Member |
2. The applicant requests that she be relieved of a debt of $308.38 incurred for the purchase of full replacement protection for her household goods (HHG).
3. The applicant states, in effect, that she retired from active duty. When she shipped her HHG to her retirement address, she purchased full replacement protection for her possessions. Although she made a claim and was paid for damage to her HHG shipment, she received a depreciated payment and did not receive full replacement value.
4. The applicant’s military records show that she is a retired Sergeant First Class (SFC/E-7). She was released from active duty at Fort Belvoir, Virginia, on 31 October 1995. On 18 June 1999, her HHGs were picked up by the mover and delivered to her retirement location in Buffalo, New York, 18 November 1999. Incident to this move, the applicant purchased full replacement protection for her HHG at a cost of $420.75. Since the Government rate for this service was only $112.37, her cost was $308.38.
5. When the applicant’s HHGs arrived in Buffalo, there was $749.70 worth of damages. She promptly filed a claim with the mover, but they referred her to the nearest military claims office at Fort Drum, New York. Unaware that she had filed a claim with the mover, the Fort Drum Claims Office sent the applicant a depreciated payment of $414.00. Because the difference between the actual loss and the depreciated payment was approximately the same as her full replacement protection cost, she accepted the payment.
6. On 29 June 2001, the Defense Finance and Accounting Service-Indianapolis Center (DFAS-IN) notified the applicant that she was indebted in the amount of $308.38 -- her portion of the cost of full replacement protection. When she contacted the mover to recover the difference ($335.70) between her claim of $749.70 and her payment of $414.00, the mover advised that they were no longer responsible for any additional compensation.
7. On 6 September 2001, DFAS-IN notified the applicant that her only recourse was to apply to the Army Board for Correction of Military Records.
8. On 19 November 2001, the Defense Legal Services Agency, after reviewing the applicant’s case, notified her that because “full replacement protection was ordered and paid for, but full replacement value was not paid,” she could attempt to get the Army to offset the $335.70 against a future payment to the mover, or she could petition this Board for relief from the $308.38 debt.
CONCLUSIONS:
1. When she contracted to ship her HHGs to her place of retirement, the applicant requested full replacement protection for her possessions. The cost of this insurance was $420.75. Since the Government would only pay $112.37, the applicant became responsible for $308.38.
2. Through a series of errors, the Fort Drum Claims Office paid the applicant a depreciated value for the damage to her HHG. When the applicant accepted this payment, the mover was released from any further liability.
3. DFAS-IN charged the applicant a debt of $308.38 for her portion of the full replacement protection on her HHG. However, the applicant did not receive full replacement value for her loss. To continue to impose this debt against the applicant is inequitable and unjust.
4. In view of the foregoing, the applicant’s records should be corrected as recommended below.
RECOMMENDATION:
That all of the Department of the Army records related to this case be corrected by showing that the individual concerned did not apply for full replacement protection for her HHG shipment of 18 June 1999, that she is relieved of the debt for same in the amount of $308.38, and that she be reimbursed for any and all moneys collected against this debt.
BOARD VOTE:
__jl____ __tbr___ __rwa___ GRANT AS STATED IN RECOMMENDATION
________ ________ ________ GRANT FORMAL HEARING
________ ________ ________ DENY APPLICATION
Joann Langston
______________________
CHAIRPERSON
CASE ID | AR2001066184 |
SUFFIX | |
RECON | |
DATE BOARDED | 20020709 |
TYPE OF DISCHARGE | |
DATE OF DISCHARGE | |
DISCHARGE AUTHORITY | |
DISCHARGE REASON | |
BOARD DECISION | GRANT |
REVIEW AUTHORITY | |
ISSUES 1. | 128.1400 |
2. | |
3. | |
4. | |
5. | |
6. |
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