The only thing is that they will lower the APR to no more than 6%or something like that, and ONLY if your boyfriend can prove that reporting for active duty has caused him to incur significant financial hardship (ie…he was making 60,000/yr, but decided to go join the Marines).

They DON’T defer payments.

Sorry to inform you SCRA does not apply to your boyfriend. You need to be serving in a war zone to qualify for it. Yes he does have access to his money he probally dosen’t want anyone to get to it. He should have given someone power of attorney to pay his bills.

I suggest you call the credit card company and negotiate a deal to lower amount due, payments and interest. This article was in today’s NY Times
Hard times are usually good times for debt collectors. But in this recession, perhaps the deepest in decades, the unthinkable is happening: collectors, who usually do the squeezing, are getting squeezed a bit themselves.
After helping to foster the explosive growth of consumer debt in recent years, credit card companies are realizing that some hard-pressed Americans will not be able to pay their bills as the economy deteriorates.
So lenders and their collectors are rushing to round up what money they can before things get worse, even if that means forgiving
a portion of some borrowers’ debts. Increasingly, they are stretching out payments and accepting dimes, if not pennies, on the dollar as payment in full.
“You can’t squeeze blood out of a turnip,” said Don Siler, the chief marketing officer at MRS Associates, a large collection company that works with seven of the 10 largest credit card companies.
“The big settlements just aren’t there anymore.”
Banks and card companies are bracing for a wave of defaults on credit card debt in early 2009, and they are vying with each other to get paid first.
So even as many banks cut consumers’ credit lines, raise card fees and generally pull back on lending, some lenders are trying to give customers a little wiggle room. Bank of America, for instance,
says it has waived late fees, lowered interest charges and, in some cases, reduced loan balances for more than 700,000 credit card holders in 2008.
American Express and Chase Card Services say they are taking
similar actions as more customers fall behind on their bills. Every major credit card lender is giving its collection agents more leeway to make adjustments for consumers in financial distress.
Debt collectors, who are typically paid based on the amount of money they recover, report that the number of troubled borrowers
getting payment extensions has at least doubled in the last six months. In other cases, borrowers who appear to be pushed to the brink are being offered deals that forgive 20 to 70 percent of credit card debt.
In the past, troubled borrowers might have been able to pay down card loans by tapping the equity in their homes, drawing on retirement savings, taking out a debt consolidation loan, or even calling a relative for help. But with credit tight, consumers are maxed out.
“Knowing that the sources of funding have dried up, having
someone pay the balance in full isn’t a viable strategy,” said Tim Smith, a senior executive at Firstsource, one of the biggest debt collection companies.
ERIC DASH

You first need to see if this “summons” is legitimate. Many phony law firms use unlawful tactics to try and collect debts.

The summons should list the docket number and which court the hearing is to be held at. Call the court clerk to verify it is an authentic summons. (the date has not been set yet because they have to wait for your answer.

They can not win a default judgment just because you did not answer the summons, you have to “fail” to show on the court date to defend yourself.

If they sent the standard response answer sheet, you should have multiple choices to check off such as “I acknowledge I owe” or “I do not owe” or “I will pay” or other words similar to that (each state uses their own version of an answer to summons).

Also, check your state statutes to see if this debt is still withing the time limits. IF the debt is past your SOL, then it would be considered “time barred” and you would respond with “this debt is time barred”
All that means is that they can not seek legal action against you in court.
Use the following to see if the debt has been time barred.

Under the FDCPA you should have received a collections notice long before the summons. If this is the first and only contact they have made with you, then request in your answer that you want VALIDATION of the debt prior to the court date or on the date of the hearing.

Your only other action would be to simply pay them off and then you will not have the headaches. You can download a copy of the FDCPA at the link I have provided in the source area, it will help you to understand your rights.

Hope this helps answer your question a little.

NOTE: This communication is not intended as or should be interpreted as legal advice. It is intended solely as a general discussion of legal principles or definitions of the FDCPA and FCRA. Always consult an attorney if needed.

Soldier’s and Sailor’s Civil Relief Act Protects Those on Military Duty
By: Cheryl Morrissey, Esq.

——————————————————————————–

Since World War I, our federal and state governments have recognized the need to temporarily protect military personnel from certain legal matters. The public policy goal is to ensure that our Soldiers, Sailors, and Marines can attend to their military duties free from worry about civil court proceedings on the homefront.
The Congress and the New Jersey legislature have enacted statutes known as Soldier’s and Sailor’s Civil Relief Acts. They differ slightly, but both provide, generally, the same relief. Given our ongoing “war against terrorism”, the provisions of these laws should be noted by those who are in the military or who are creditors of those in the military. Violation of some parts of these laws are criminal offenses punishable by incarceration and fines.

Participation in Court Proceedings
New Jersey’s SSCRA says that no judgment or final order may be entered in any civil court while the defendant is in the service, unless the judge appoints an attorney to represent the defendant. An appointed attorney’s authority is limited, however. It is also possible for a Court to require that a plaintiff seeking a judgment against a military defendant post a bond. The bond would be used to indemnify a defendant against an order or judgment that may end up being set aside when the defendant returns home.

Statutes of Limitations
Soldiers and sailors are generally protected from statutes of limitations. They do not run against those on active military duty.

Stay of Proceedings
Courts may stay any civil action in which a soldier or sailor is involved during the period of that person’s military service and for sixty days thereafter. A stay of proceedings is up to the Court’s discretion, though, and may not be granted if the judge believes that the prosecution or defense of the case is not materially affected by reason of the military service.

Signs and Penalties
Military personnel can be relieved by a Court from fines or penalties that accrue for non-performance of some contracts if military service materially impaired the ability of the soldier or sailor to pay or perform.

Interest Rate Caps
There are also interest rate caps on pre-service obligations if active military duty materially affects the soldier’s or sailor’s ability to pay the debt. The rate cap is currently 6% under the federal law. This provision is particularly significant because military personnel can use it to demand reductions on everything from credit card interest rates to commercial loan rates to mortgage interest rates. Reservists who are called up are the people most likely to have their ability to pay “materially affected” by military duty.

Foreclosures
If a soldier’s or sailor’s ability to make mortgage payments is materially affected by active military duty, a mortgagee may not foreclose without a Court order. Foreclosure proceedings will be stayed or the Court will dispose of the case in an “equitable” way.

Real Estate Agreements
Unless a court approves, a seller of real estate is prohibited from rescinding or terminating a purchase contract if the buyer signed the contract and paid a deposit or made an installment payment before being called to active military duty. With regard to leases, a soldier or sailor may terminate pre-duty obligations on commercial or residential properties without penalty. A landlord may not evict an active military member from commercial or residential property when the rent is $1200 a month or less without a Court order. Courts are empowered to stay evictions, among other remedies.

And I quote, [pardon me] to wit:

” Amnestying those whose total of payments is more than twice the amount of the cards’ maximum credit amount seems reasonable to me a dividing line. In my case, that would give me some $600 per month in pocket to inject directly into the economy — and I would still be doing my part as a citizen in paying my share of the bank bailout through taxes. Things as they are seem so unfair! I mean, I can’t exactly call the credit bureaus and wreck the BANKS’ credit-score, can I? ”

‘Astute. ‘Very. However, such is ‘too’ fair; and perhaps — rather advanced. Or say, — rather clear-headed.

But — some turn on this may eventually come to light anyway once the, say, Devil feels It has gotten Its fair share; hence there is some keen awareness to the affect you announce, enclosed within this 18-month interim you speak to. And to that end, do not be surprised that Obama has just that in waiting, which may bring to bear exactly what you now advance in your thoughts, the like of which, too, may come as honest in the thoughts of comptrollers and economists as the unemployment ceiling rises to 10% and upward (which unofficially is all but there now).

Ultimately, as many have come to see, especially the gentleman and ex-Madoff associate, who recently committed suicide a couple of weeks ago, one were simply to shelve if not all but destroy the old pillars of capitalism and pay down one’s principal-debt on each count — way down, in fact, to which any converse dealings are presently not negotiable. For Wall Street as was known, is no more.

For now more than ever not even the experts in the Schools know how to suggest. What, with Harvard University alone losing 25% of its endowment — what, Harvard!? featuring arguably the top MBA/DBA Business School programs in the country — and Microsoft slated to be laying off thousands of IT and hardware engineers and Managers commencing in maybe the next two weeks!

Greed did blind the penny-thrifts to the better algorithms, which imports were needing applied but not heeded. As an ex-G.I., I will say this. We are in combat and thus are to be in combat-readiness. ‘Made to improvise.

Bush did this Rip Van Winkle!

Beware of “debt consolidation” companies – they may help you, but everything has its price, and they will take a slice of whatever savings they obtain for you. A non-profit debt consolidation place would be better.

But they can’t do anything for you that you can’t do for yourself.
First, take a hard look at your budget and your spending. Cut out anything that is absolutely necessary, and direct that spending to paying off your debt.
Call the creditors and explain your situation. Tell them you would like to pay off your debt, but have certain limitations. Ask if they will consider forgiving part of the debt, freezing the interest charges, or agree to a payment plan.
Transfer all your credit card balances to the card with the lowest interest rate, if possible.
Educate yourself – the personal finance section of your local library has some wonderfully helpful books. The “Dummies” and “Complete Idiots” gudie will give you a basic foundation, and authors like David Bach, David Ramsey, and Suze Orman all offer practical, inspirational advice for getting and staying out of debt.

Yep its so unfair its laughable !

The capitalist system milks the honest hard worker and those that pay taxes and charges on their debts.

The financial institutions Globally (uk too) get bailed by us (tax payers) whilst we still try to maintain increased debts on credit and store cards.

Theres no amnesty for the little guy,never has been,never will be,even if the fairy god mother got elected.

The real economy has been daffy ducked for many years,and is for many years to come,the dodgy handshake brigade will always get bailed out by the masses of every country.

Mugabe like,but without so much death ,of course a few will “jump” a few will starve,a few will just wither on the economic vine,but the majority of mugs (most of us) will just pay up work harder and even take second tax paying jobs or grab some money in the cash economy.

No one needed a crystal ball for this,we all knew that house prices had got beyond a joke and the bubble would burst.
Its great in theory to get the masses to buy property and then make them feel good (asset rich) by inflating those property prices and creating “wealth” but once the rug gets pulled we all fall over !

How many times has it occured in your life time,3 times in mine.

Like war reperations,we just have to pay up for years (britain has only just paid the U.S. back recently for WWII)

I would love the leaders to wipe the little guys debts,but thats not going to happen. Sorry.

I totally agree that it would free up the little guy to spend his way out of recession,if the banks can get bailed then why not,but the answer will always be cant be done,too difficult,or any number of reasons to avoid freeing up the workers,you and me are where we are supposed to be in the great scheme of things,on rung 1 , 2 or 3 of the eco ladder,if your real lucky you may get to rung 4 one day,keep looking up,only look down when kicking the lower little guy back down a rung !

It does not mean that you must go to court, although that may happen later.

It does means that you must prepare (or pay someone to prepare) a legal document called an “answer”, which is essentially your response to the allegations in the complaint, and send copies to the court and to the credit card company’s lawyer.

It is very important to do this immediately. If they do not receive this “answer” document within 20 days of when the papers were delivered to your home, it is as though you went to court and lost. There will be a judgment on your credit report and you may face gage garnishments or other problems.

If you do not know enough about the law to prepare the answer in time for it to be delivered before the 20 day period expires, then seek assistance from an attorney.