thedrifter
11-29-08, 07:10 AM
Spitz: Bank won't put bills on hold for Natick Marine recruit
By Julia Spitz/Daily News columnist
MetroWest Daily News
Posted Nov 29, 2008 @ 12:28 AM
The Paytons aren't looking for a bailout from Bank of America while their son's in basic training at Parris Island.
All they want is a little time.
"A simple three-month deferment, like the more patriotic members of the financial community have done," said Jerry Payton, whose son, Kenneth "K.C." Payton reported for Marine Corps boot camp Oct. 27.
Since Bank of America accepted its share of the multibillion-dollar Troubled Asset Relief Program approved by Congress this fall, Jerry Payton thinks maybe some of that bailout money could go "to defer payments for kids in basic training for defense of this country."
"In accordance with federal law and the Soldiers and Sailors Relief Act of 1940, we reduce the interest rate on credit cards to 5.9 percent when military personnel have been activated," Bank of America spokeswoman Nicole Nastacie said in an e-mail yesterday. "In addition, during this time we suppress any fees."
"They don't have to defer the payments, I guess, but the other creditors did," said Jerry Payton. "The others, with far less resources, did so."
Jerry and Lee Payton have concerns going public with their beef with Bank of America could have their son "in the sand pit doing pushups," but "it's simply the right thing to do," said his father.
"I want to see (banks) do this as a matter of course for kids serving in the military. I don't feel like I'm going to bat only for my son. K.C. isn't the only one this is happening to."
Credit card debt, as well as patriotism, played a role in the 2004 Natick High School graduate's decision to enlist in the Marines, his parents said.
So far, it's been a good fit.
"He seems to love it. He's found his element," said Jerry, who talked to K.C. on Thanksgiving, the first time the new recruit was allowed to use the phone while in basic training. K.C. qualified for the Marines' aviation program, said his father, and "he's very excited about it."
His parents had mixed reactions when K.C., a former co-captain of the Natick High hockey team who had been working as an electrician's apprentice in Marlborough, informed them of his plans.
"Papa Bob, Grandpa, you did it, now it's my turn," Jerry remembers his son saying of the family's tradition of military service.
"It was very conflicting for me," said Jerry, who served in the Air Force. While he's proud of his son's decision, the Vietnam veteran remembers "being despised, being spit at, being called a baby killer" when he returned home from his tour of duty. "I said, if any son of mine got involved in an undeclared war, I'd take him to Canada and live there with him myself."
"He wanted to join the Marines because they're the best and the bravest," said Lee Payton, but it was a decision made after a lot of thought. "He's a little older" than many new recruits. "He looked at 'What skills can I get out of this?' It's also a way to get out of debt."
The debt.
A fancy truck. Some credit cards.
"Predatorial practices, going after them" said Jerry, "and practically waiting for them to stumble," said Lee.
"He fell victim, as many kids do, to the predatory lending," said his father. "We could have bailed him out," but he's proud of his son's decision to take responsibility.
Before he left for boot camp, with the help of his recruiter, K.C. sent out letters to his creditors.
It was a standard message, on U.S. Marine Corps letterhead, citing the Soldiers and Sailors Civil Relief Act, and stating Payton "humbly request(s) that you suspend his cell phone services, bank services, credit card services and all other payments" while he's at Parris Island, since he will not receive a paycheck until his training ends on Jan. 26.
The letter acknowledges "only a court may resolve this issue when the service person's ability to comply with the terms of this obligation is materially affected by reason of military service," but adds, "a delay or reduction in income by reason of military service is considered to be an appropriate cause to suspend or modify installment contracts."
The letter, signed by his recruiter, also states, "I assure you that this arrangement is temporary and he intends to fulfill his obligation to you."
Other creditors, including CapitalOne and Rockland Federal Credit Union, complied with the law, which reduces loan interest rates for military on active duty, but also opted to defer payments until after K.C. completes basic training and can collect a paycheck.
Bank of America reduced its rate, but still wants its money. Now.
Lee and Jerry say they've begun to receive dunning calls.
The company has a Web site for military customers, touted as "part of Bank of America's commitment to serving those who serve the country," but that's not the message Jerry Payton has gotten.
It's "time to earn the right to use the name you so proudly display on your letterhead," he said of Bank of America.
(Julia Spitz can be reached at 508-626-3968 or jspitz@cnc.com.)
Ellie
By Julia Spitz/Daily News columnist
MetroWest Daily News
Posted Nov 29, 2008 @ 12:28 AM
The Paytons aren't looking for a bailout from Bank of America while their son's in basic training at Parris Island.
All they want is a little time.
"A simple three-month deferment, like the more patriotic members of the financial community have done," said Jerry Payton, whose son, Kenneth "K.C." Payton reported for Marine Corps boot camp Oct. 27.
Since Bank of America accepted its share of the multibillion-dollar Troubled Asset Relief Program approved by Congress this fall, Jerry Payton thinks maybe some of that bailout money could go "to defer payments for kids in basic training for defense of this country."
"In accordance with federal law and the Soldiers and Sailors Relief Act of 1940, we reduce the interest rate on credit cards to 5.9 percent when military personnel have been activated," Bank of America spokeswoman Nicole Nastacie said in an e-mail yesterday. "In addition, during this time we suppress any fees."
"They don't have to defer the payments, I guess, but the other creditors did," said Jerry Payton. "The others, with far less resources, did so."
Jerry and Lee Payton have concerns going public with their beef with Bank of America could have their son "in the sand pit doing pushups," but "it's simply the right thing to do," said his father.
"I want to see (banks) do this as a matter of course for kids serving in the military. I don't feel like I'm going to bat only for my son. K.C. isn't the only one this is happening to."
Credit card debt, as well as patriotism, played a role in the 2004 Natick High School graduate's decision to enlist in the Marines, his parents said.
So far, it's been a good fit.
"He seems to love it. He's found his element," said Jerry, who talked to K.C. on Thanksgiving, the first time the new recruit was allowed to use the phone while in basic training. K.C. qualified for the Marines' aviation program, said his father, and "he's very excited about it."
His parents had mixed reactions when K.C., a former co-captain of the Natick High hockey team who had been working as an electrician's apprentice in Marlborough, informed them of his plans.
"Papa Bob, Grandpa, you did it, now it's my turn," Jerry remembers his son saying of the family's tradition of military service.
"It was very conflicting for me," said Jerry, who served in the Air Force. While he's proud of his son's decision, the Vietnam veteran remembers "being despised, being spit at, being called a baby killer" when he returned home from his tour of duty. "I said, if any son of mine got involved in an undeclared war, I'd take him to Canada and live there with him myself."
"He wanted to join the Marines because they're the best and the bravest," said Lee Payton, but it was a decision made after a lot of thought. "He's a little older" than many new recruits. "He looked at 'What skills can I get out of this?' It's also a way to get out of debt."
The debt.
A fancy truck. Some credit cards.
"Predatorial practices, going after them" said Jerry, "and practically waiting for them to stumble," said Lee.
"He fell victim, as many kids do, to the predatory lending," said his father. "We could have bailed him out," but he's proud of his son's decision to take responsibility.
Before he left for boot camp, with the help of his recruiter, K.C. sent out letters to his creditors.
It was a standard message, on U.S. Marine Corps letterhead, citing the Soldiers and Sailors Civil Relief Act, and stating Payton "humbly request(s) that you suspend his cell phone services, bank services, credit card services and all other payments" while he's at Parris Island, since he will not receive a paycheck until his training ends on Jan. 26.
The letter acknowledges "only a court may resolve this issue when the service person's ability to comply with the terms of this obligation is materially affected by reason of military service," but adds, "a delay or reduction in income by reason of military service is considered to be an appropriate cause to suspend or modify installment contracts."
The letter, signed by his recruiter, also states, "I assure you that this arrangement is temporary and he intends to fulfill his obligation to you."
Other creditors, including CapitalOne and Rockland Federal Credit Union, complied with the law, which reduces loan interest rates for military on active duty, but also opted to defer payments until after K.C. completes basic training and can collect a paycheck.
Bank of America reduced its rate, but still wants its money. Now.
Lee and Jerry say they've begun to receive dunning calls.
The company has a Web site for military customers, touted as "part of Bank of America's commitment to serving those who serve the country," but that's not the message Jerry Payton has gotten.
It's "time to earn the right to use the name you so proudly display on your letterhead," he said of Bank of America.
(Julia Spitz can be reached at 508-626-3968 or jspitz@cnc.com.)
Ellie