SERVING OUR SERVICE MEMBERS
DID YOU KNOW THE TOTAL POPULATION OF ACTIVE-DU- TY SERVICE MEMBERS IS APPROXIMATELY 1. 4 MILLION? Did you know the total population of reservists is approximately 1. 1 million? Did
you know that U.S. military is on the ground in 148 countries, according to the Pentagon?
And finally, did you know, according to The New York Times, that the suicide rate
among the nation’s active-duty military personnel has spiked this year, eclipsing the
number of troops dying in battle? The Times article attributed these military suicides to
having too few qualified mental health professionals and the stigma of receiving counseling. Family stresses and financial problems exacerbated these issues.
While no one is saying that bankers providing financial
products to military personnel can lessen the suicide rate among
service members, they must recognize that military personnel
entering into active duty may experience a significant impact
to their income stream (especially for reservists who are asked
to leave their civilian jobs for an extended amount of time to
fulfill their military obligation). The drop in pay can directly
impact their ability to make mortgage, auto, installment, or
student loan payments.
With The Servicemember’s Civil Relief Act (SCRA), the
government has taken steps to protect military personnel.
Bankers need to understand this law and how it protects military members (it’s an important issue to both authors who are
former service members).
History of SCRA
SCRA dates as far back as the Civil War. It was originally known
as the Soldiers and Sailors Civil Relief Act of 1918 during
World War I. Congress enhanced the law during World War II
in 1940 by strengthening the basic intent, which was to allow
military personnel to give their full attention to their duties. In
2002, Congress began taking a renewed interest, focusing on
reservists and National Guard members, and the Soldiers and
Sailors Civil Relief Act was renamed as the Servicemember’s
Civil Relief Act. In December 2003, it was signed into law as
SCRA. Since the enactment of the law, the U.S. Supreme Court
has said that the statute should be read, “with an eye friendly to
those who dropped their affairs to answer their country’s call.”
The last two years have brought even more movement as the
media, regulatory agencies, and congressional hearings placed
significant attention on SCRA. For example:
