Civil Relief Act called to duty

As the U.S. armed services wage the war on terrorism, some service men and women may qualify for assistance in fulfilling their civilian financial obligations. Whether it be a mortgage or credit card debt, all active armed-forces personnel are encouraged to become familiar with the protections offered by the Soldiers and Sailors Civil Relief Act of 1940.

"The purpose of the (act) is to strengthen the defense of the United States by suspending enforcement of some civil liabilities, so service members can devote their entire attention to defense," said a representative of the Air Force legal assistance division at the Pentagon.

"It's beneficial for every service member to be aware of the law's general provision, so they'll know when they are involved in a situation and may be protected."

Consider:

A National Guardsman is unexpectedly called to active duty in the Middle East. As he heads overseas, the guardsman leaves behind a wife and child, as well as a mortgage and credit-card debt. If his military pay will be lower than his civilian pay, the act allows him to request that his creditors place a 6 percent interest rate cap -- a rate specified by law -- on his debts for the duration of his military obligation.

The act also offers relief to renters whose monthly rent does not exceed $1,200. Those who qualify are entitled to a 90-day grace period before they may be evicted for failure to make rent.

Dick Kolkoski, chief of civil law at Nellis Air Force Base, said that before applying for protection under the act, service members should determine whether or not his or her family will be "materially affected" by the reduction in income.

"If the person is not materially affected, he is not going to benefit from this," Kolkoski said. "The whole method of the act's protection is to help the individual who goes away to war and has (significantly) less money."

Kolkoski said affected personnel should contact their Judge Advocate General's office for the proper procedure.

Congress permanently instituted the SSCRA in 1940. It was last implemented Sept. 24, 2001, by Secretary of Defense Donald H. Rumsfeld in the wake of the Sept. 11 attacks. Nationwide, Washington Mutual and Freddie Mac say a relatively small number of inquiries have since been made about the act.

Washington Mutual, for example, has averaged 250 requests each month from individuals seeking relief under the act. A spokesman said the company handles more than 4 million mortgage customers each year. Freddie Mac, aka Federal Home Mortgage Corp., a buyer and seller of home mortgages, reports that about 1,800 borrowers have claimed protection under the act since September; another low figure considering Freddie Mac provides funds for more than 8 million mortgage customers annually.

Kolkoski said several inquiries have been made at Nellis from service members who want to know "if there is protection there."

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