Dodging debt - what can you do?

  • Published
  • By Tech. Sgt. Steven Wilson
  • 28th Bomb Wing public affairs
ELLSWORTH AFB, S.D. --  Servicemembers are afforded several protections regarding debt collection under federal law, which may ease burdens in tough economic times. These protections can help relieve debts incurred before entering military service, or as far as the daily workplace goes, debt collectors' constant hounding. 

A chief benefit active-duty members have is they can add a certified attorney as a bullet in their ammunition cache for dealing with debt and debt collection. 

"Seeing a judge advocate general gives Airmen a whole bunch of options," said Capt. Bronson Malcom, 28th Bomb Wing staff judge advocate. "We can represent you and, if part of the problem is creditors calling you at work, we can have them call us as your legal representative." 

Topics discussed by an attorney and his or her client are confidential. 

"Everything a client and I converse about is protected by attorney-client privilege," Captain Malcom said. "It doesn't leave this office." 

Captain Malcom said the law affords Airmen protection from debt collectors who may be giving them difficulties at home or on duty. 

"There are restrictions on when they can call you and, in most cases, if you tell them you are not allowed to receive their calls at work or to converse with your attorney, they must comply with that under the Fair Debt Collection Practices Act," Captain Malcom said. 

The FDCPA has other protections as well concerning debt collectors and their tactics.
"They can't call you before 8 a.m. or after 9 p.m.," Captain Malcom said. "They can't verbally harass or abuse you." 

There's also protection for military members as part of the Servicemembers Civil Relief Act. It can provide top-cover for Airmen in certain situations. For instance, suppose an Airman is downrange and someone tries to file a civil suit while they're out of the country. SCRA prevents a court from judging against the military member while they are away conducting America's business. 

"SCRA is a powerful tool for people who are deployed," Captain Malcom said. "While it can't altogether stop a court case; it can defer the court date or prevent a default judgment against you. It's a protection military members have that can prevent actions taken against them while they're deployed." 

The captain also said while the case may be delayed while the member is overseas, the member would most likely have to settle the matter with the courts on their return. 

An additional measure within SCRA can actually save servicemembers their hard-earned money. There's a provision under this law that deals with credit card debt and is something, according to Captain Malcom, a lot of Airmen don't know about. 

"Another tool under SCRA involves pre-service debt obligations," Captain Malcom said. "Often we can help someone reduce, for example a credit card debt that's around 25 percent, to a fixed six-percent interest rate. This is a great asset hardly anyone takes advantage of." 

There's also a possibility of creditors, or people claiming to be creditors, calling Airmen and demanding payment for good or services. A collector may claim someone owes a debt that may not be legitimate at all due to billing errors, expired statute of limitations or the very real threat of identity theft. 

Servicemembers should avoid snapping to attention and paying a debt a collector claims is owed especially if they're not sure they incurred the debt in the first place. They could be a target for identity theft. 

A 2007 study conducted by the Federal Trade Commission, which can be accessed at http://www.irs.gov, indicates "identity theft is the fastest growing crime in the U.S." 

The report states there were 161,836 complaints of identity theft in 2002; however, by 2003 that number had jumped to 214,905. In September 2003, the FTC reported 27.3 million Americans had been victims of identity theft in some form over the last five years. 

If an Airman is not certain they owe a debt, Captain Malcom said not to be afraid of a collector's threats and to take action. 

"You should never pay something you don't owe," he said. "If you pay it; you may assume liability for it." 

Assuming a liability can affect one's credit rating. To protect oneself there are certain steps to take. 

"If you think you're a victim of identity theft, the first thing to do is file a police report," said Captain Malcom. "Then, you should make an appointment to see an attorney. 

"If you're disputing something someone says you owe them, the best way to communicate with these people is through your attorney," said Captain Malcom. "He or she will do that on your behalf." 

While the protections under federal law are helpful and useful tools, it's not a security blanket for not paying one's bills. 

"I can't, for example, protect you from your commander if he or she is pursuing administrative action because you haven't paid your bills," Captain Malcom said. "But, if you get in here early we can probably help before it gets out of hand." 

The chain of command can help junior members from falling into the pit of debt collection by keeping an eye on their younger charges.
 
Ellsworth's senior enlisted leader said while he understands every person has a reasonable expectation of privacy, leaders should be prepared to intervene when necessary. 

"I encourage our enlisted corps, and especially the NCOs in supervisory positions, to keep abreast of what's going on in their subordinate's life," said Chief Master Sgt. Clifton Cole, 28th Bomb Wing command chief. "An airman first class, for example, showing up to work in a limited edition sports car he didn't have yesterday, or bragging about his or her two houses should prompt someone to ask questions." 

Ellsworth's JAG corps agreed. 

"If you're getting into problems, get help," Captain Malcom said. "The base has lots of resources to help you. No one can say 'you don't have to pay your bills', but there are resources to help before a bad situation gets worse and there are protections under the law an attorney can help with." 

Other resources are available for help. Airmen can seek advice and counseling through the Airman Family Readiness Center. 

Further information or assistance can be obtained by making an appointment with an attorney through the legal office at (605) 385-2329