Eliminating Financial Penalties for our Courageous Troops

By Senator Russ Feingold

July 30, 2007

Our brave men and women in uniform face difficult emotional and physical challenges when they are deployed away from family and into the most dangerous areas of the world. Unfortunately, they also face personal financial challenges, as well, as they deal with contracts that millions of Americans have, like auto, home, and cell phone contracts.

Current law allows servicemembers who are called to active duty to terminate contracts such as automobile and residential leases without consequence. Yet, while cell phone companies in some states provide a few allowances, servicemembers across the country do not have a legally protected right to terminate cell phone contracts without having to pay fees.

Cell phone contracts and fees are the last thing our servicemembers should have to worry about during their goodbyes to family and friends or while doing daily patrols on the dangerous streets of Iraq. Seven states have already recognized this, and the federal government must do the same and set basic protections for our servicemembers.

In May of this year, I once again introduced legislation to allow servicemembers who are transferred or called up to active duty to terminate cell phone contracts without having to pay termination fees or reactivation fees. My legislation has been well received from members of both parties, including from cosponsor Senator Johnny Isakson (R-GA). Eight national servicemember groups have expressed support for my legislation or a modified version of my legislation approved by the Senate Veterans Affairs Committee, including the Military Officers Association of America and Iraq and Afghanistan Veterans of America. The U.S. Army has also expressed support for the legislation.

First Lieutenant Melissa Inlow of the Wisconsin Army National Guard testified at a hearing in the Wisconsin State Assembly on the need for similar legislation. “It’s becoming increasingly difficult to get cell phone service providers to suspend the contract,” she said. “Even with suspension the soldiers are still paying up to $25 a month for a service they cannot reap the benefits of. These fees can accumulate to more than the termination fee which on average is $200.”

My legislation, which expands the law allowing servicemembers to terminate residential and automobile leases, took a major step to becoming signed into law in June. On June 27, the Veterans Affairs Committee included a modified version of my proposal in a major veterans bill that is awaiting final consideration in the Senate.

Congress has the responsibility to do everything possible to ensure our troops, who make immense sacrifices to serve our nation, have the best benefits possible. This bill is just one small, but meaningful step to improve the lives of the most courageous Americans.

I am working to pass this proposal through the full Senate. Congress must not sit idly by as our courageous troops endure financial difficulties from their service to our country.



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