SERVICEMEMBERS CIVIL RELIEF ACT (SCRA)
What You Need to Know About the
Servicemembers Civil Relief Act (SCRA)
Recognizing the special burdens that members of the military may encounter trying to meet their financial obligations while serving their country, the Servicemembers Civil Relief Act (SCRA) [P.L. 108 -189], was enacted on December 19, 2003 as a modernization and restatement of the protections contained in the Soldiers’ and Sailors’ Civil Relief Act (SSCRA) which Congress passed in 1940. The SCRA provides a wide range of protections for individuals entering, called to active duty in the military, or deployed servicemembers. It is intended to postpone or suspend certain civil obligations to enable service members to devote full attention to duty and relieve stress on the family members of those deployed servicemembers.
PROTECTIONS UNDER THE SCRA: • Allows servicemembers who are parties in civil lawsuits (such as paternity and child custody suits) to request a stay if their military service precludes their attendance in court. • Protects servicemembers on active-duty from default judgments if they fail to appear at trial or respond to a lawsuit because of their military service. • Caps interest rates on “pre-service” debts at 6% for the duration of the servicemember’s period of military service. • Prevents landlords from evicting servicemembers on active duty for nonpayment of rents below a certain threshold, except by court order. • Allows servicemembers to unilaterally terminate pre-service lease contracts following specified procedures. • Prohibits sale of goods placed in storage either before a military service call or during a period of active service for unpaid charges, except by court order. • Prohibits sellers from repossessing, reclaiming, or foreclosing on property that a servicemember contracted to buy under a pre-service contract, except by court order. • Authorizes the court to stay proceedings or adjust obligations in the case of claims filed to enforce mortgage or trust deed payments.
• Protects life insurance from lapse with nonpayment of premiums. • Provides for reinstatement of any health insurance in effect on the day before active military service commenced, without waiting period and physical restrictions. • Allows servicemembers who have pre-service professional liability insurance policies to suspend premiums and coverage during the period of military service. • Allows servicemembers on active duty to defer income tax payments for up to six months after discharge if ability to pay is impaired by military service and clarifies other tax issues. • Prohibits the use of personal assets to satisfy business obligations even though the servicemember may be personally liable (50 USC App. § 596); and Prohibits both creditors and insurers from pursuing adverse actions (e.g., notifying credit agencies, denying credit, changing terms) against servicemembers solely because they exercise SCRA rights (50 USC App. § 518). • Servicemembers can terminate cell phone contracts when military orders require relocation for more than 90 days to an area that does not support the contract. This applies to family contracts as well as individual contracts. • When SCRA protections are broken, in some circumstances the servicemembers may be able to recover attorney fees and court costs.
Legal assistance offices are located on almost every base, ship and installation. A servicemember can visit one of the following websites: ARMED FORCES LEGAL ASSISTANCE DIRECTORY: www.aflegalassistance.law.af.mil ARMY: www.jagcnet.army.mil/legal NAVY / MARINE CORPS: www.jag.navy.mil/legal_services.htm 4COAST GUARD: www.uscg.mil/legal/la/Legal_Assistance_Find_Lawyer.asp
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