San Diego, CA - What happens
when a member of the military, who just leased a new
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
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
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
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
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.