Chairman Craig Warns Companies To Comply With Military Lending Laws
June 17, 2005
Contact: Jeff Schrade 202-224-9093
(Washington, DC) U.S. Senator Larry Craig, chairman of the U.S. Senate Committee on Veterans' Affairs, said today that he is deeply troubled about reports indicating that some companies are not complying with a federal lending law which protects active duty military personal.
?I was told this morning that at least four wounded servicemen have had their cars repossessed this week while being treated for their injuries at Walter Reed Army Hospital in Washington, D.C. That is simply unacceptable and may be in violation of federal law,? Craig said.
The Idaho Republican said that lenders need to be reminded that the Servicemembers Civil Relief Act (SCRA) protects active-duty military families, including National Guard troops called up to active duty, from foreclosures, evictions and other financial matters. Under the law, service members are exempt from repossession or foreclosure without a court order.
The act also caps servicemembers' interest rates at 6 percent, if military service affects his or her ability to meet the obligations, and allows them to terminate any real estate lease when their military orders require them to do so. The law also forbids judges from holding military personnel in default on any legal matter unless the court has first appointed a lawyer to protect the servicemember.
Craig said that he has asked his staff to carefully review the situations involved with the repossessions and see if the law needs to be strengthened. The SCRA legislation is under the jurisdiction of the Senate Veterans' Affairs Committee which Craig chairs.
The senator's comments came after meeting with members of the Helping Our Heroes Foundation, an organization established last October to help provide financial aid and services to injured military personnel. The group held a breakfast today with members of Congress to introduce their efforts.
?AirTran Airways is working with us to provide free air travel for wounded soldiers and their families, for travel between the Walter Reed Army Medical Center and their homes. We're looking for other airlines to step up and follow the example AirTran has set. We're looking for other financial help from others as well,? said Karen Theobald, President and CEO of the Helping Our Heroes Foundation.
Sen. Craig commended the foundation for its efforts and issued a call to corporate America to do more.
?Our servicemen and women have laid their lives on the line for us. Now is the time for the rest of us to help them,? Craig said. ?Some need care packages and visits while in the hospital. Others need assistance with transportation costs. These men and women need jobs when they return to civilian life. Many companies are helping, but every CEO and businessperson in America needs to ask, ?What can our company do?'?
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