The Enlisteds' Credit Woes

The N.Y. Times has this story on the problems soldiers are having with their creditors. Active-duty soldiers are protected under the Servicemembers Civil Relief Act. As I understand it, under this act, the interest rate on their pre-enlistment debts are to be capped at 6% if service in the military has cut into the family's income. Their houses cannot be foreclosed upon. Their material goods cannot be reposessed without a court order and a prerequisite for a court order would entail notifying said soldier. The soldier's spouse is also protected under this act.

Some companies just are not familiar with the act. And I'm sure some soldiers are not aware of the act as well; especially the reservists. Two of the companies named in this story are Wells Fargo and Citigroup.

And the act itself has many problems

Some problems that military personnel are confronting suggest that the new law may need more work by Congress. For example, although mandatory arbitration clauses are becoming increasingly common in credit agreements, arbitration is not even mentioned in the relief act.

But the biggest problem, both bankers and military lawyers say, is that the enforcement of the act rests initially on the shoulders of the service members themselves. They must notify their creditors or landlords of their military status to invoke their rights under the act. It is one more chore for a soldier getting ready for overseas duty, and it often does not get done properly.

And if a landlord or creditor, out of ignorance or intransigence, refuses to comply with the act, the service member may not have the time or money to fight back, said Capt. Kevin P. Flood, a retired Navy lawyer.

What are our men and women to do? What are our boys and girls supposed to do? What are their families supposed to do?

Maybe this story appearing in the N.Y. Times will help, but how many? How many will still be shit out of luck upon returning from this war? Will they even have anything to return to?