It is well known that members of the U.S. military risk their safety while on active duty serving their country, but they often risk more than that—indeed, while on active duty, they may also face a certain amount of financial uncertainty.

Fortunately, the Servicemembers Civil Relief Act is in place at the federal level to protect servicemembers from major financial stressors like home foreclosures and car repossessions while they are on active duty. There may also be additional protections at a state level—indeed, most do. Only 13 states and the District of Columbia do not include state-level SCRA benefits, though the federal SCRA benefits still apply in these states.

What Is the SCRA?

The Servicemembers Civil Relief Act was enacted back in December 2003 as a method of protecting servicemembers from significant financial burdens while they are on active duty serving their country. Under the SCRA benefits, lenders are prohibited from repossessing the servicemember’s personal property, including their car, and from foreclosing on their home without a court order.

The SCRA is not the first law introduced for this purpose—it is actually an expansion and clarification of the Soldiers’ and Sailors’ Civil Relief Act of 1940.

SCRA law allows the Attorney General to pursue litigation against anyone who violates this law and harms a servicemember.

SCRA Law Overview

SCRA protection covers a variety of potential issues that members of the military may face as they go into active duty. These include:

• Rental agreements
• Security deposits
• Prepaid rent
• Evictions
• Installment contracts
• Credit card interest rates
• Mortgage interest rates
• Mortgage foreclosures
• Civil judicial proceedings
• Automobile leases
• Life insurance
• Health insurance
• Income tax payments

What Are the Benefits of SCRA?

Servicemembers can receive a number of SCRA benefits while on active duty. Under the SCRA, servicemembers are entitled in certain instances to interest rate reductions. The interest rate for debts entered into before entering military service cannot exceed six percent for the duration of their military service. For mortgages in particular, this requirement extends for one year after their military service ends. Any interest in excess of six percent cannot be deferred; instead, it has to be totally forgiven.

Property owned by a servicemember prior to military service cannot be foreclosed upon, sold, or seized for the duration of their military service, and then for another nine months after their service, without a court order or the written agreement of the servicemember.

Landlords are not allowed to evict active duty servicemembers unless the rent exceeds a certain amount that changes every year.

Self-storage facilities cannot sell servicemembers’ belongings due to overdue rent, without a court order.

Servicemembers cannot be taken to court for civil proceedings, including divorce and child support hearings.

Relocation due to military duty can bring up a number of potential challenges. However, the SCRA allows servicemembers to terminate telecom contracts due to relocation for at least 90 days to a place that isn’t covered by your current provider. Servicemembers are also allowed to keep their current phone number after cancelling their service due to a relocation that lasts less than three years.

If servicemembers deploy for 90 days or more, they are able to end a housing lease without incurring a penalty.

There are certain SCRA protections for family members of servicemembers as well. A surviving spouse is allowed to terminate a lease if their partner dies while on active duty. A military spouse can also choose to claim their home of record, the servicemember’s state of legal residence, or the state in which they are living on their taxes.

Delayed payments due to SCRA provisions will not reflect poorly on a servicemember’s credit report.

SCRA Benefits Requirements & Eligibility

SCRA protection applies to these servicemembers:

• full-time active duty members of the military
• Reservists on federal active duty
• Members of the National Guard on federal orders for a period of more than 30 days

Under the SCRA, spouses and dependents are also in certain instances offered an amount of protection with SCRA benefits.

In order to claim any of these SCRA benefits, you should be ready to present a copy of your orders to active duty or deployment. The Department of Defense also has a SCRA website through which servicemembers can print out a legal document that shows their active duty status.

SCRA Lease Termination Assistance

Servicemembers can terminate a property lease if they entered active duty during the lease period or if they executed the lease while in the military, but then received Permanent Change of Station (PCS) orders or deployed for at least 90 days. Termination of the lease requires written notice to the landlord rather than simple oral notification, and there is a bit of lag time between notice of termination and when the lease is actually terminated. If the lease is a month-to-month rental, termination occurs 30 days after the next rental payment after the landlord is notified. For non-month-to-month payments, termination goes into effect on the last day of the month after the month in which the landlord is notified.

Car lease termination is a little different, as it can go into effect immediately.

If you have been ordered to active duty or deployment and want to terminate a lease under the SCRA, but are unsure how to go about it or otherwise need assistance, you may choose to consult an SCRA lawyer to help you.

How to Find a SCRA Lawyer

If you are a member of the U.S. military and believe you were subjected to SCRA violations, you may be able to file a lawsuit and pursue compensation. Filing a lawsuit can help you, through either a judgment or settlement, gain compensation for the harm done to you.

Filing a lawsuit can be a daunting prospects, so Top Class Actions has laid the groundwork for you by connecting you with an experienced SCRA lawyer. Consulting an SCRA lawyer can help you determine if you have a claim, navigate the complexities of litigation, and maximize your potential compensation.