Last year my unit was on a 15-month deployment to Iraq. I had contacted T-Mobile before I left and was assured that there would be no problems with my account while I was deployed. But then I learned that an unpaid charge for an early-termination fee of $218 had gone to collection, causing my credit score to drop 75 points. A T-Mobile representative asked me to pay the bill, which I did, and then figure it out from there. But now a representative from the collection agency says that I should make another payment through her. The whole point of having a "military suspension" is to avoid problems like this. Can you do anything to help?
We contacted T-Mobile, and the company credited the disputed amount to your account and removed the collection account from your credit report. A T-Mobile spokesperson said the company "regrets this isolated incident," but declined to comment further on your account due to customer privacy concerns.
Many companies, including T-Mobile, have military-suspension policies -- special payment rules for members of the military who are deployed. Customers in the military who are sent to an area not served by T-Mobile can suspend their service for up to 18 months, with no suspension fee, and have their cell-phone number and rate plan reinstated when they return.
Sign up for Kiplinger’s Free E-Newsletters
Profit and prosper with the best of expert advice on investing, taxes, retirement, personal finance and more - straight to your e-mail.
Profit and prosper with the best of expert advice - straight to your e-mail.
Under the Servicemembers' Civil Relief Act -- a 1940 law that was updated in 2003 -- military personnel who are deployed have additional rights.
For instance, you have the right to terminate an apartment lease if you have a permanent order for a change of station or are deployed to a new location for 90 days or more. You can terminate a car lease without an early-termination fee if you are deployed for 180 days or longer. And in some situations, the interest rate on a mortgage, credit card, car loan or other debt can be capped at 6% if military service affects your ability to pay (this rule applies only to debt incurred prior to military service).
For more information about special legal rights for members of the military and veterans, go to the U.S. Department of Justice's Safeguarding the Rights of Servicemembers and Veterans page. For information about preparing for deployment, see Military.com's Deployment Center. And for special personal-finance advice for military families, see Assets Deployed and At Your Service.
-
Here's How To Get Organized And Work For YourselfWhether you’re looking for a side gig or planning to start your own business, it has never been easier to strike out on your own. Here is our guide to navigating working for yourself.
-
How to Manage Risk With Diversification"Don't put all your eggs in one basket" means different things to different investors. Here's how to manage your risk with portfolio diversification.
-
Credit Report Error? They All Mattercredit & debt Don't dismiss a minor error. It could be the sign of something more serious.
-
Insurance for a Learning Driverinsurance Adding a teen driver to your plan will raise premiums, but there are things you can do to help reduce them.
-
529 Plans Aren’t Just for Kids529 Plans You don’t have to be college-age to use the money tax-free, but there are stipulations.
-
When to Transfer Ownership of a Custodial Accountsavings Before your child turns 18, you should check with your broker about the account's age of majority and termination.
-
Borrowers Get More Time to Repay 401(k) Loans
retirement If you leave your job while you have an outstanding 401(k) loan, Uncle Sam now gives you extra time to repay it -- thanks to the new tax law.
-
When It Pays to Buy Travel Insurance
Travel Investing in travel insurance can help recover some costs when your vacation gets ruined by a natural disaster, medical emergency or other catastrophe.
-
What Travel Insurance Covers When Planes Are Grounded
Travel Your travel insurance might help with some costs if your trip was delayed because of the recent grounding of Boeing 737 Max planes.
-
Ways to Spend Your Flexible Spending Account Money by March 15 Deadline
spending Many workers will be hitting the drugstore in the next few days to use up leftover flexible spending account money from 2018 so they don’t lose it.
