More Help For Military Members Who Are Deployed
 
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More Help For Military Members Who Are Deployed
Service Member's Civil Relief Act Updated for 2004.

San Diego, CA -  What happens when a member of the military, who just leased a new vehicle,
and shortly thereafter gets a deployment order for outside of the United States. The average consumer might be stuck, however under this law, service members would be allowed to cancel the lease if their deployment is 180 days or more.

Congress recently updated and passed the Soldiers and Sailor's Relief Act, which is now known as the Service Member's Civil Relief Act. It has created special relief for service members deployed overseas, especially in the area of vehicle leases and capping interest rates on other loans to six percent per year during periods of military service. One reason for an update of the legislation existing since World War I is that there was no such thing as a motor vehicle lease in the early 1900s.

Overall, the legislation is designed to help ease the legal and economic burdens on military personnel called to active duty overseas. Congressman Bob Simmons, a cosponsor of the law then known as HR100 said 'This bill gives temporary financial and civil relief to the brave men and women fighting the front lines of terrorism. Often times being deployed equates with taking a pay cut and having the entire family make sacrifices for the sake of our nation's welfare. The Service Members Civil Relief Act is Congress' effort to ease further stresses on these patriotic families."

To protect their rights H.R. 100 will provide service members with automatic 90-day stays in civil proceedings. Furthermore, if an additional stay is subsequently requested but denied, the court will be required to appoint a counsel to protect the service member's rights while he remains on active duty. The Service Member's Civil Relief Act will also:

Expand current law that protects service members and their families from eviction from housing while on active duty due to nonpayment of rents that are $1,200 per month or less. Under the new provisions this protection would be significantly updated to meet today's higher cost of living - covering housing leases up to $2,400 per month - and then be adjusted annually to account for inflation.

Provide a service member who receives permanent change of station orders or who is deployed to a new location for 90 days or more the right to terminate a housing lease.

Clarify and restate existing law that limits to 6 percent interest on credit obligations, including credit card debt, for active duty service members. HR 100 unambiguously states that no interest above 6 percent can accrue for credit obligations while on active duty, nor can that exCEUss interest become due once the service member leaves active duty - instead that portion above 6 percent is permanently forgiven. Furthermore, the monthly payment must be reduced by the amount of interest saved during the covered period.

Update life insurance protections provided to activated Guard and reserve members by increasing from $10,000 to $250,000 the maximum policy coverage that the federal government will protect from default for nonpayment while on active duty.

Prevent service members from a form of double taxation that can occur when they have a spouse who works and is taxed in a state other than the state in which they maintain their permanent legal residence. HR 100 will prevent states from using the income earned by a service member in determining the spouse's tax rate when they do not maintain their permanent legal residence in that state. 

For more information you may visit the ICFE web site at: www.financial-education-icfe.org or call: 619 239 1401.
 

About the ICFE:

The Institute of Consumer Financial Education (ICFE) was founded in 1982 by the late Loren Dunton (creator of the Certified Financial Planner (CFP) designation).  The ICFE is dedicated to helping consumers of all ages to improve their spending, increase savings and use credit more wisely. 
The ICFE is an award winning, nonprofit, consumer education organization that has helped millions of people through its education programs and Resources. It publishes the Do-It-Yourself Credit File correction Guide, which is updated annually. The ICFE has distributed over one million Credit/Debit Card Warning Labels and Credit/Debit Card Sleeves world wide.

The ICFE became an official partner with the Department of Defense/Financial Readiness Campaign in June of 2004.The ICFE was an active partner in the California Student Debt Resource Awareness Project (CASDRAP) which resulted in a new web site: (studentdebthelp.org).  CASDRAP disbanded in 2010, shortly after the web site project was completed.  In 2011 the ICFE assumed the single sponsorship of the (studentdebthelp.org) web site and is now responsible for its content and operation.

The ICFE is also an on-line help for consumers who spend too much.  ICFE's spending help was featured in PARADE Magazine in the Intelligence Report section. The money helps and tips are from the ICFE's Money Instruction Book, our course in personal finance.

Visit the ICFE's other web sites at: www.financial-education-icfe.org and studentdebthelp.org.  Both sites helps consumers and students with mending spending, learning about the proper use of credit, budget and expense guidelines, how to set up and implement a spending-plan and also how to access financial education courses and how to teach children about money. Other ICFE services include: Ask Mr. G,  a free eNews, and an online resource center for students, parents and educators, plus financial education learning tools and a book store.

About the ICFE:

The Institute of Consumer Financial Education (ICFE), founded in 1982 by the late Loren Dunton (creator of the 'certified financial planner' (CFP) designation) and it is dedicated to helping consumers of all ages to improve their spending, increase savings and use credit more wisely. The ICFE trains and certifies Personal Finance Instructors for its own curriculum. It also trains and certifies Credit Report Reviewers and Identity Theft Prevention Specialists.

The ICFE is an award winning, nonprofit, consumer education organization that has helped millions of people through its education programs and Resources. It publishes the Do-It-Yourself Credit File correction Guide, now in its 16th printing and has distributed over one million 'Credit/Debit Card Warning Labels' and 'Credit/Debit Card Sleeves' world wide.

The ICFE became an official partner with the Department of Defense/Financial Readiness Campaign in June of 2004.

The ICFE is also a partner in the national Jump$tart Coalition for Financial Literacy and the California Jump$tart chapter. The ICFE staff is also active with San Diego Saves, an offshoot of America Saves, and the California Student Debt Resource Awareness Project (CASDRAP) (studentdebthelp.org).

The ICFE's on-line help for consumers who spend too much was featured in PARADE Magazine in the Intelligence Report section. The money helps and tips are from 'The Money Instruction Book,' a course in personal finance, positioned to become among the premier programs in the new bankruptcy and debtor education initiatives.

The ICFE Web site at: www.financial-education-icfe.org helps consumers with mending spending, learning about the proper use of credit, budget and expense guidelines, how to set up and implement a spending-plan and also how to access financial education courses and videos and how to teach children about money. Other ICFE services include a free eNews, and an online resource center of financial education learning tools, including videos, books, software and personal finance courses.

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