Sgt. John J. Savage III, an Army reservist, was about to climb onto a troop transport plane for a flight to Iraq from Fayetteville, N.C., when his wife called with alarming news: “They’re foreclosing on our house.” Sergeant Savage recalled, “There was not a thing I could do; I had to jump on the plane and boil for 22 hours.”
He had reason to be angry. A longstanding federal law strictly limits the ability of his mortgage company and other lenders to foreclose against active-duty service members.
But Sergeant Savage’s experience was not unusual. Though statistics are scarce, court records and interviews with military and civilian lawyers suggest that Americans heading off to war are sometimes facing distracting and demoralizing demands from financial companies trying to collect on obligations that, by law, they cannot enforce.
The Supreme Court has ruled that the acts provisions must “be liberally construed to protect those who have been obliged to drop their own affairs to take up the burdens of the nation.”
Yet the relief act has not seemed to work in recent cases like these (and many others):
Fort Hood, Tex., a soldier’s wife was sued by a creditor trying to collect a debt owed by her and her husband, who was serving in Baghdad at the time. A local judge ruled against her.
Camp Pendleton, Calif., more than a dozen marines returned from Iraq to find that their cars and other possessions had been improperly sold to cover unpaid storage and towing fees. The law forbids such seizures without a court order.
This article is long, but definitely worth a full read.
This act is supposed to protect active duty military members and their families from repossession and foreclosure without a court order. It also allows the members and their families to terminate any lease if official military orders require them to do that – - and it is to keep judges from holding them in default without appointing a lawyer to protect them and their interests.
It doesn’t seem that hard to understand – - yet when it comes to the companies they know the laws when it comes to getting their way – - but when it comes to protecting their active duty military clients they claim ignorance.
It will be interesting to see if any one of the companies is fined for “breaking the law” because this act is completely worthless unless it is enforced.
At first glance I automatically side with the military. But if these people had the debt prior to enlisting in the military, then their options may be limited. But I wont’t lie, I still would side with the military:wink:
This to me looks like it has the potential to become a double edged sword with future military members. The law is clear and the judges can and should be over turned. Unfortunately many people are unaware of this. I think the Creditors have no problem lending, but do have a problem with the fact that they can not enforce their own rules to to customer.I can see where it will become difficult for future enlistees to obtain credit though.
I hope others will blog about this as well.
I too hope others will blog about it – - it is a real problem for our military members.
I also think the act is more for those in the reserve. Those who earn a certain amount of funds, but then when put on active duty their pay drops dramatically.
As for those active duty members who had their cars sold and personal items – those were mostly single Marines who were fighting in battles in Iraq and paying their storage just wasn’t a priority – - The act was supposed to protect their belongings and should not have been sold without a court order. They had no idea this was going on until they returned home and that outrages me.
As for getting out of a lease. If the government gives an active duty member orders that they have to move within a period of time that is less than the time left on their lease – - then I agree with the act and am against the landlords because the military members should not have to pay out the lease to be released from their obligation.
The act does not allow for military members (active or otherwise) to abuse their creditors and rights – - it has to be under circumstances that fall within the act and for the creditors to “not” know the law is ridiculous.
OK, I’m ranting.
I agree with you. I am also wondering about the scenario you played out. Is that single marine being punished even further by having the negative credit on his credit report? Unacceptable.
It is definitely taking a toll on their credit reports. The companies go after them and it shows on their credit reports as derogatory and past dues and some companies have been questioned about it – - but again it seems the act is not being enforced and therefore they aren’t fixing the problems.
For instance the case of Sgt. John J. Savage III who couldn’t get a loan to save his business when he returned home because his credit report was a mess because of the threatened foreclosure by the mortgage company. The company finally let them keep their home, but never removed the negative process from his report.
4- Wow. I am appalled at this. And that just must be a nightmare to go up against them.
As a former enlisted (US Navy 1989-1993), I can attest to a few things in this matter.
1. THe enlisted ranks of the US military is overwhelmingly comprised of POOR young men and women. Make no mistake, from inner city youths, to the rural poor, the vast majority of those who serve have NEVER had any money to speak of.
2. Military pay is a joke. Though I have been out for over 10 years now, I can distincly remember that my pay was basically enough to survive, provided I lived on the base, never bought clothes and ate on the ship every day. Of course the military provides the basic necessities, but beyond that, most enlisted are basically living under the poverty line.
3. High concentration military areas (Norfolk, VA. San Diego, CA, etc.) are RIDDLED with scam artists, predatory lenders, shifty creditors, etc. who prey on young, naive, financially irresponisible, underpaid soldiers and sailors, knowing that ANY failure to pay can result in their easily being able to garnish wages and apply RIDICULOUS finance charges, etc.
Unfortunately, these naive enlisted sailors and soldiers get caught in this trap and really only have themselves to blame. I can remember convertibles complete with Buxom blondes that used to cruise on Rosecrantz Blvd, right outside the fence of NTC San Diego, just waiting for some Joe-bob from Iowa, looking to buy an engagement ring for his sweetheart back in Stump Creek…poor sap would happen upon these scam artists, willing to offer anything up-front… jewelry, electronics, even cars, then, when the sap finds out he can’t afford it, misses a payment, etc… BAM…next thing you know, the pathetic $275 he was to take home every 2 weeks is being garnished from his pay.
It’s a sad tale, but one that happens all the time.. I know this sounds tough, but it is mostly the fault of the soldiers and sailors themselves.. unfortunately, they are ill-prepared to be able to recognize these scams for what they are.
Not all that many military members are as naive as that, mike – - yes there are some, but there are naive people from all walks of life as well as in all professions and/or vocations. Don’t make it seem that our troops are all stupid.
Plus military bases do offer financial planning classes and other budgeting programs for those who want to be informed – - just as such programs are available to most everyone through various organizations.
The act is there to protect those who are serving their country. Say a reservist is making $100,000.00 a year and is living within his or her means – - but they are called to active duty and their pay is cut down to 1/5th of that amount – - this is who the act is supposed to protect. As well as those military members and their families who are active duty and perhaps they are losing comrats and their military pay has been messed up because of the deployments and it takes the military several paydays to get it straightened out. It also protects them from getting rammed by their landlord if they get orders to move so they won’t have to pay out the rest of their lease.
There are many times the act is necessary – - and yet the creditors are not heeding the law and are still doing exactly what they want to do. The act needs to be enforced.
Reilly- I got with 2 other blog owners to join this fight to get the word out. Can you please do the same? I am going to assume Mike is right to a certain degree. BUT those members are still protected under the law, AND if they are naive about financial planning, lets get the word out there.
Reilly, we are obviously talking about 2 separate issues…sorry.
That’s great, peejz – - and I am involved and am getting the word out
As for Mike being right to a certain degree – - he most definitely is. I just wanted to make it clear that being in the military doesn’t make someone backwards and the majority of those serving aren’t as naive as I felt his comment made them out to be.
no reason to say “sorry”, mike – - you have your opinion and I have mine
Reilly, having spent 4 years in the US Navy, I can, without hesitation, say that, YES, most of them are EXACTLY as naive as I have described.
I stand by my comment, and feel sorry for them.
I feel that I must speak up. Reservist today have several issues that need to be addressed.
USSERA, United States Soldiers and Sailors Act, which is designed to protect Reserist/National Guard from adverse employeer descisions should have more teeth to it. Many Reservist find themselves as “undesirables” in some companies. Due to being “away” from their jobs for periods of time they become a liability in the eyes of some employers. Sometimes, they ARE discriminated aginst for real, and unfortunately pushed out the door. The only thing that govt can do for them is to get their jobs back, by threating any govt contracts the company might hold.
It seems the only thing that some of these companies understand is the $$$$$. If that is the case, let them be sued for discrimination, just like other cases, ie. minorities. This would put a stop to this, qick fast and in a hurry.
Some reservist make much more money in their civillan jobs. For instance, I know of a Heart Surgon that is a Sergant in the Special Forces. This is an extreme example, but the point is that some people really go into the “hole” when deployed. Now, I think that it is possible for the Congress to strenghten the guidelines for fincacially protecting these individuals. There are laws that state that lenders must drop rates on loans to 6% if they were signed “before” deployment or initally joining the service. I also don’t think it would hurt some if these lenders to deffer payments until post deployment for soldiers in need.
Just my opinion, for what it is worth.
JG
13. Mike, I know EXACTLY what you are talking about. There are many places off base that will run scams, extremely high rate loans, and basically do anything to take advantage of servicemen. Places like that are starting to get banned from doing business with Soldiers.
Yeah JG..agreed.
I don’t know, according to Reilly (expert in all things military) I am way off base here…. I guess I didn’t serve and see these things first hand.
16-I don’t think that is what she was saying. I think she agreed with part of your comment but did not want it to appear that that is the case in all situations.
of course it’s not ALL situations.. nobody said that… I’m giving you what I witnessed first-hand. Luckily, I was never sucked into any of these scams.
“It also allows the members and their families to terminate any lease if official military orders require them to do that…”
That’s not exactly true. I know on the base i’m stationed at they require you to bring a copy of the lease in to be reviewed prior to you signing it. This is to ensure that a) You’re not getting screwed and B) there is a Military statement added to the lease that allows the Military member to break the lease if orders are issued to them.
6 – Mike, I have to disagree about Military pay being a joke (at least now, i’m not an old timer like you, though
). Although the pay isn’t great it is more than enough to pay for an apartment, feed yourself, and buy a car. Granted, it may not be a brand new Navigator or brand new anything, for that matter – but it’s those who go and buy a brand new car with no previous credit history who get screwed and stuck with $500 car payments and $400 insurance payments. It’s the same naive people you referenced that get stuck into these pit holes.
11 – Reilly, being active duty at the moment I have to agree with Mike. Unfortunately, there is a majority of naive people in the Military. Mostly the lower ranking enlisted, and unfortunately they’re paid the least.
14 – Not to get off track or detract from your point, but that Heart Surgeon should apply for the surgical field in the reserves. =D
15 – Check Cashing places are one of the hardest on the young and naive members. They seem good until you actually look into them a little bit and unfortunately, most don’t. I know from living there that Norfolk is riddled with them as is Phoenix.
#13 – - And knowing what I know about the military you could not be more wrong. So according to what you say, mike, and being you were in the military wouldn’t that then make you stupid and naive too? I wouldn’t think so .
#16 – - Reilly, expert in all things military?
When did I ever say that, mike? Not ever.
I stated from what I know about the military just as you stated from what you know about the military. Don’t put words in my mouth.
#17 – you’re right, peejz – - I was saying that
#18 – - so now it is just from what you personally witnessed and not as vast as you stated in your comment #13 and the one above it. Which makes my point as I was trying to state that to begin with. It is not ALL or as VAST.
#19 – - I understand that the lower ranks can be more naive and they are paid the least. These are also young men and women who could be eighteen years of age. They would be naive to many things no matter what their profession and/or vocation is – - that is all I am saying.
I was just trying to make the point that our military is not filled with stupid naive people as was being insinuated in earlier comments. That’s all.
Well I got it:smile:
I’m so glad someone did, peejz!
Reilly…the enlisted ranks ARE filled with young, undereducated, naive kids…are you really disputing this?????? Can YOU possibly be so in denial? or any I like the president to you, no matter what I say, it just has to be wrong?????
I’m sorry, again, I stand by my earlier statements…why else would so many hundreds of thousands of young enlisted members allow themselves to pay into the “G.I. Bill”..or, what I call, an enlisted Tax, never to receive its benefits????/
BECAUSE THEY DON’T KNOW ANY BETTER.
Ok, I gotta speak up. Years ago, when I enlisted, yes I spent 9 years enlisted before my Commision, I wasn’t the brightest person around. I was very young. However, I never fell for the scams or traps that some around me did. The military was VERY good for me. Some people grow, some don’t learn. The military is actually a good crossection of America. You have have people who are bright and are driven to succede, and those who see the military as a welfare program. The vast majority of those who go beyond their enlistment are responsible, but those first years are the killer.
BTW, I just want to state that I have run across young Lieutenants that are just as ignorant as those right out of High School. Some of the ROTC grads,,,,, well lets just say I wouldn’t put in charge of a latrine cleaning detail, yet alone a platoon of soldiers.
I think what we are getting at is; Yes we agree that many are young and ignorant (naive). But not all are. There are those that prey on them. We need to stop the preying upon them and educate them. We also need to make sure that their rights are not being trampled on by creditors and judges ignoring the law.
But you are still an ass John:wink:
29. That I am.
A lovable one.
Hey all thanks for the support here Im amazed. Im an E5 from a civilian Job I was CTO in a Wireless Communications Corp so its a big difference. The mortgage company got my orders and sent me my payment letter and said the knew of the Act but then thier paymnet center refuse to take my wifes checks in the amount they siad we to send them.. Simply put they screwed up…