While members of the U.S. military are overseas, jeopardizing their lives fighting for freedom in the bombed out streets of Iraq, bill collectors back home are illegally targeting their financially stretched families.

The trend is putting home ownership in jeopardy for some families.

One third of military families who develop financial hardship, because a breadwinner has gone off to war, seeks housing-related financial assistance, the largest single financial need cited in a survey of soldiers seeking help from USA Cares, a non-profit military support operation.

Despite recently updated federal regulations that strengthened the prohibition of collection activities against military families, reports reveal, bill collectors do so because they aren't familiar with the law. Also, some families don't take the required steps necessary to trigger the law's benefits.

The increased illegal activity is also an outgrowth of the large contingent of National Guard and Reserve units called up for the Iraq War, who often trade in higher private employment income for military pay that is smaller because it includes 'three hots and a cot' and other military personnel discounts.

U.S. military reports compiled by National Public Radio in "Guard, Reserve Service Takes High Financial Toll" reveals:

• There were 183,366 National Guard troops and Reservists on active duty in March and 430,000 of them have been activated at some point since the Sept. 11 terrorist attacks.

• Some 40 percent of troops on the ground in Iraq are National Guard or Reserve forces.

• Fifty-five percent of married Guard and Reservists reported a loss of income while serving; 49 percent report a decrease in pay of $1,000 a month or more, and 15 percent reported a decrease in pay of $30,000 a year or more.

• Some 18 percent of Guard and Reservist troops have turned to military support organizations for assistance.

By law, the troops shouldn't be distracted or demoralized by the cross hairs of bill collectors.

Signed into law December 2003, the Servicemembers Civil Relief Act (SCRA) updates the Soldiers' and Sailors' Civil Relief Act originally passed during World War I, reenacted during World War II and modified during the first Persian Gulf War of 1991 -- Operation Desert Storm. Also, in July 2001, a federal court ruled that service members could sue violators of the relief act for damages.

More recently, the terrorist attacks in September 2001, the subsequent Afghanistan conflict, and the Iraq War are responsible for the latest rendition of the federal law which allows military members to suspend, postpone or reduce some financial obligations so that the military member can devote his or her full attention to military duties.

Key to the benefits, however, is the requirement that for some provisions military families must show that military service has had a "material effect" on the family's finances. That can be achieved with copies of bills, payments, payroll statements, and documentation from employers about post call-up pay.

Families cannot assume protection under the law is automatic, but must send the lender or creditor a written request for SCRA assistance and a copy of military orders and other supporting documents.

Once the lender or creditor is put on notice, however, it must comply with the law.

For debts incurred before the borrower went into active military service, the law offers the following protections, among others:

• Temporary relief from paying mortgages.

• Protection from eviction for up to three months provided the rent does not exceed established levels that rise with inflation each year.

• Permission to terminate a lease without repercussions.

• A 6 percent cap on interest rates for all credit obligations including credit cards, mortgages, and some student loans.

Published: April 5, 2005

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A journalist for 35-years, Broderick Perkins parlayed an old-school daily newspaper career into a digital news service offering editorial content and consulting services. Perkins' San Jose, CA-based DeadlineNews Group includes the flagship news site, DeadlineNews.Com, offering real estate, personal finance and consumer journalism, and a backshop, the Deadline Newsroom.