Members of the Armed Forces Are Protected From Creditors Hunting Them Like Jackals

Amnorix · 03-28-2005, 11:41 AM

There is a very interesting article in the NY Times today about how a number of companies and other creditors are illegally chasing after members of the armed forces, often reservists who have been called to active duty. For the most part, it seems like it's done out of ignorance, either of the status of the individuals as members of the military, or of the federal law that protects them. It seemed like I should post this so that if anyone knows a member of the armed forces having trouble with this, they could take appropriate steps.

"The law, the Servicemembers Civil Relief Act, protects all active-duty military families from foreclosures, evictions and other financial consequences of military service."

Note also that the law provides that:

1. creditors can't seize assets (i.e. car reposession) without a court order (not normally required);

2. that landlords must release a member of the military who is forced to break a lease as a result of being called up.

3. judges cannot declare a member of the military in default without first appointing an attorney to represent their interests.

4. pre-military debts (CREDIT CARDS TOO) get capped at 6% interest rate if/when you get called up.

"Military lawyers, credit industry organizations and some state courts and bar associations have also tried to spread the word about the new law. But these efforts are not enough, said Col. John S. Odom Jr., retired, of Shreveport, La., who is a specialist on the act. "What we need is a way to reach Joe Bagadoughnuts in Wherever, Louisiana," he said. "Because that's where these cases are turning up."

Obviously, my summaries above are just simplifications of a complex law designed to cover many situations that cause members of the military financial distress as a result of their being called to serve their country. In any event, this gives you an idea, so if you can spread the word to Joe Bagadoughnuts in Wherever, Louisiana....

**BigMeatballDave** · 03-28-2005, 12:01 PM

Good...

Abba-Dabba · 03-28-2005, 12:17 PM

Them bastards have been preying on military members for decades. When I was stationed at Ft. Benning there were places all over willing to give any military member credit at outlandish % rates. There was one place, I forget the name of it, Easy loans, Payday Loans, something along those lines. If a military member went in there for $1000 dollar loan they would end up paying off that loan in $150 payments for 10 months. Car lots were just as bad. A green soldier just out of basic doesn't know jack shit. They go down buy a car, take a loan, set up a AAFES credit account and max it out. And before they know it they are in debt up to their ears with interest rates that would kill a millionaire. Those bastards take advantage of military members because they know the money comes every 1st and 15th.

It was no surprise all these shady places are 95% in one area. With the tittie bars, car lots and check cashing places.

Mark M · 03-28-2005, 12:27 PM

The act in the article, the Servicemember's Civil Relief Act (formerly the Soldier's and Sailor's Relief Act of 1940) protects those who have been called up to active duty.

Basically, any debt incurred prior to military service can be reduced to a max interest rate of 6%. There are also a number of rules governing foreclosures and legal actions.

The key is that the service member must invoke hisher SCRA protections and prove that his/her ability to pay has been "materially affected" by military duty. Lenders do not have to just give the rate to anyone who serves.

Trust me ... I've read the law and written several articles on it.

Also, Sam Grabes (R-Mo.) has put forth H.R. 97, a bill that seeks to limit the interest rate for service members to 36% (most payday places charge as much as 700% when factored as APR).

If anyone wants to know more, just let me know.

MM
~~

Amnorix · 03-28-2005, 12:42 PM

Quote:

Originally Posted by Mark M

Trust me ... I've read the law and written several articles on it.

Interesting. Are you an attorney? If so, I didn't know that.

Mike Grose · 03-28-2005, 12:44 PM

I'll never forget the carlots just off-base that would sell cars 10-15 times each. Sell car @ 25-50% interest. Repo car. Sell again.

Mark M · 03-28-2005, 12:45 PM

Quote:

Originally Posted by Amnorix

Interesting. Are you an attorney? If so, I didn't know that.

Nope. I'm a writer for a financial service company that works exclusively with military personnel.

Our company (or, rather, I) wrote an article for the Georgia Industrial Loan Association, have composed several letters to the editor and a white paper about the SCRA.

Hell, at this point I know more about it than our legal staff.

MM
~~

Red Dawg · 03-28-2005, 12:55 PM

When I've been deployed I've always gotten my bills taken care of. After I got married it was no problem obviously. This problem runs amuk with young single soldiers. They don't have someone at home paying the bills.

Amnorix · 03-28-2005, 02:03 PM

Quote:

Originally Posted by Mark M

Nope. I'm a writer for a financial service company that works exclusively with military personnel.

Our company (or, rather, I) wrote an article for the Georgia Industrial Loan Association, have composed several letters to the editor and a white paper about the SCRA.

Hell, at this point I know more about it than our legal staff.

MM
~~

I have no doubt. Interesting.

Boozer · 03-28-2005, 02:10 PM

Quote:

Originally Posted by Saggysack

Them bastards have been preying on military members for decades. When I was stationed at Ft. Benning there were places all over willing to give any military member credit at outlandish % rates. There was one place, I forget the name of it, Easy loans, Payday Loans, something along those lines. If a military member went in there for $1000 dollar loan they would end up paying off that loan in $150 payments for 10 months. Car lots were just as bad. A green soldier just out of basic doesn't know jack shit. They go down buy a car, take a loan, set up a AAFES credit account and max it out. And before they know it they are in debt up to their ears with interest rates that would kill a millionaire. Those bastards take advantage of military members because they know the money comes every 1st and 15th.

It was no surprise all these shady places are 95% in one area. With the tittie bars, car lots and check cashing places.

No joke. I just read an article that was submitted discussing this phenomenon. The density of these loan sharks around military bases compared to surrounding areas is astounding. States really need to dust off their criminal usury laws and get crackin'.

Mark M · 03-28-2005, 02:14 PM

Quote:

Originally Posted by Boozer

No joke. I just read an article that was submitted discussing this phenomenon. The density of these loan sharks around military bases compared to surrounding areas is astounding. States really need to dust off their criminal usury laws and get crackin'.

Would that be the study done by Univ. of FL and CalState-Northridge?

The numbers are really frightening, and not just around military bases. Poor areas are also huge targets for predatory douche bags.

The saddest part is that these places prey on those with little fiscal knowledge. They're so good at it that Americans paid $3.4 billion in payday loan fees last year alone.

MM
~~

Boozer · 03-28-2005, 02:33 PM

Quote:

Originally Posted by Mark M

Would that be the study done by Univ. of FL and CalState-Northridge?

The numbers are really frightening, and not just around military bases. Poor areas are also huge targets for predatory douche bags.

The saddest part is that these places prey on those with little fiscal knowledge. They're so good at it that Americans paid $3.4 billion in payday loan fees last year alone.

MM
~~

Yes, actually it was. I don't have the final say, but it might be appearing in the Kansas Law Review.

Duck Dog · 03-28-2005, 02:38 PM

I used the SSA for a divorce. Well, I used it to make that biatch wait until I got home.

15 months.

03-28-2005, 11:41 AM
Amnorix In BB I trust Join Date: May 2003 Location: Boston, Mass. Casino cash: $10029808	Members of the Armed Forces Are Protected From Creditors Hunting Them Like Jackals There is a very interesting article in the NY Times today about how a number of companies and other creditors are illegally chasing after members of the armed forces, often reservists who have been called to active duty. For the most part, it seems like it's done out of ignorance, either of the status of the individuals as members of the military, or of the federal law that protects them. It seemed like I should post this so that if anyone knows a member of the armed forces having trouble with this, they could take appropriate steps. "The law, the Servicemembers Civil Relief Act, protects all active-duty military families from foreclosures, evictions and other financial consequences of military service." Note also that the law provides that: 1. creditors can't seize assets (i.e. car reposession) without a court order (not normally required); 2. that landlords must release a member of the military who is forced to break a lease as a result of being called up. 3. judges cannot declare a member of the military in default without first appointing an attorney to represent their interests. 4. pre-military debts (CREDIT CARDS TOO) get capped at 6% interest rate if/when you get called up. "Military lawyers, credit industry organizations and some state courts and bar associations have also tried to spread the word about the new law. But these efforts are not enough, said Col. John S. Odom Jr., retired, of Shreveport, La., who is a specialist on the act. "What we need is a way to reach Joe Bagadoughnuts in Wherever, Louisiana," he said. "Because that's where these cases are turning up." Obviously, my summaries above are just simplifications of a complex law designed to cover many situations that cause members of the military financial distress as a result of their being called to serve their country. In any event, this gives you an idea, so if you can spread the word to Joe Bagadoughnuts in Wherever, Louisiana....
Posts: 43,125

03-28-2005, 12:01 PM	#2
BigMeatballDave GBM 8-12-15 Join Date: Aug 2000 Location: Dayton, Oh. Casino cash: $10052154	Good... __________________ 2015 Adopt-a-Chief: Tamba Hali
Posts: 59,997

03-28-2005, 12:17 PM	#3
Abba-Dabba MVP Join Date: May 2001 Casino cash: $4502970	Them bastards have been preying on military members for decades. When I was stationed at Ft. Benning there were places all over willing to give any military member credit at outlandish % rates. There was one place, I forget the name of it, Easy loans, Payday Loans, something along those lines. If a military member went in there for $1000 dollar loan they would end up paying off that loan in $150 payments for 10 months. Car lots were just as bad. A green soldier just out of basic doesn't know jack shit. They go down buy a car, take a loan, set up a AAFES credit account and max it out. And before they know it they are in debt up to their ears with interest rates that would kill a millionaire. Those bastards take advantage of military members because they know the money comes every 1st and 15th. It was no surprise all these shady places are 95% in one area. With the tittie bars, car lots and check cashing places.
Posts: 18,146

03-28-2005, 12:27 PM	#4
Mark M What time is it? Join Date: Sep 2000 Location: You tell me ... Casino cash: $9884900	The act in the article, the Servicemember's Civil Relief Act (formerly the Soldier's and Sailor's Relief Act of 1940) protects those who have been called up to active duty. Basically, any debt incurred prior to military service can be reduced to a max interest rate of 6%. There are also a number of rules governing foreclosures and legal actions. The key is that the service member must invoke hisher SCRA protections and prove that his/her ability to pay has been "materially affected" by military duty. Lenders do not have to just give the rate to anyone who serves. Trust me ... I've read the law and written several articles on it. Also, Sam Grabes (R-Mo.) has put forth H.R. 97, a bill that seeks to limit the interest rate for service members to 36% (most payday places charge as much as 700% when factored as APR). If anyone wants to know more, just let me know. MM ~~ __________________ ChiefsPlanet -- n. The place where brilliant minds assemble to willfully pool ignorance with questionable logic in order to reach absurd conclusions.
Posts: 4,687

03-28-2005, 12:44 PM	#6
Mike Grose Starter Join Date: Mar 2004 Location: Springfield, MO Casino cash: $10004900	I'll never forget the carlots just off-base that would sell cars 10-15 times each. Sell car @ 25-50% interest. Repo car. Sell again.
Posts: 61

03-28-2005, 12:55 PM	#8
Red Dawg Going home eventually Join Date: Dec 2002 Casino cash: $4602858	When I've been deployed I've always gotten my bills taken care of. After I got married it was no problem obviously. This problem runs amuk with young single soldiers. They don't have someone at home paying the bills. __________________ If you're not first you're last!
Posts: 30,471

03-28-2005, 02:38 PM	#13
Duck Dog Reap the whirlwind Join Date: Aug 2000 Location: Olathe Casino cash: $10004900	I used the SSA for a divorce. Well, I used it to make that biatch wait until I got home. 15 months.
Posts: 8,902