Military servicemembers make sacrifices for our country and our freedoms, especially when on active duty. In order to recognize this sacrifice and lighten financial burdens on active servicemembers, the Civil Rights Division of the Department of Justice (DOJ) created the Servicemembers Civil Relief Act (SCRA). This act limits the financial repercussions on active duty servicemembers including but not limited to putting a cap on interest rates, restricting default judgments, and protecting servicemembers from having their car repossessed, according to the DOJ.

If you are an active-duty servicemember facing financial burdens and pitfalls, the SCRA may offer protections. If you have had your car repossessed while on active duty, you may be able to bring civil actions.

What Happens When a Car is Repossessed? 

According to the Federal Trade Commission (FTC), when a consumer finances or leases a vehicle, the creditor or lessor maintains certain rights over the vehicle. These rights are laid out in the contract you sign based on state and federal laws. For example, if you fall behind on payments, the creditor may be able to repossess the vehicle without warning. They may also sell your contract to a third party who then gains the right to repossession.

Repossession means the creditor can seize the vehicle from your property so long as they don’t commit a “breach of peace”: use physical force, threats of force, or seizure from a closed garage without permission. Once the vehicle is repossessed, the creditor may choose to sell it to cover your debt. This may give you a chance to buy back the vehicle if you have your car repossessed.

Is it Legal For Your Car to Be Repossessed While You Are On Military Service? 

There are several ways that the government tries to protect servicemembers. There are protections against lease terminations, the enforcement of storage liens, and protections regarding those under installment contracts.

Specifically, the SCRA makes it illegal for a creditor to repossess a vehicle while the borrower is in a period of military service without a court order. Anyone who violates this law may be subject to a federal lawsuit filed by the Attorney General. The Attorney General is authorized to seek monetary damages, equitable relief, declaratory relief, and civil penalties for creditors.

SCRA Car Repossession Protections 

The SCRA lays out six different protections for active servicemembers. The fourth protection covers whether or not an active-duty servicemember may have their car repossessed. Under this protection, a creditor may not repossess the vehicle of service members if they are on active duty. These protections may also extend to the spouse or children of the servicemember or anyone for whom they have provided significant financial support for at least 180 days.

What Are the Exceptions to the SCRA Car Repossession Restrictions? 

There are a few exceptions to servicemember car repossession protections structured into the SCRA. The fourth protection specifically states that a servicemember can’t have their car repossessed without a court order. This implies that a court order may be sufficient to override the protections of the SCRA. The fourth protection also stipulates that the servicemember must have “either placed a deposit for the vehicle or made at least one installment payment” on the vehicle before going on active duty. The SCRA also states that any of its protections can be waived if a written waiver of rights is signed by the servicemember during or after their active duty service.

If you are planning on leasing a car while on active duty and wish to be covered by the protections laid out in the SCRA, you must begin making payments on the vehicle before leaving.

How to Respond to Violations of the SCRA 

The DOJ lays out guidelines for servicemembers to file a complaint claiming their creditor has violated the SCRA. To begin, “non-attorneys must first seek the assistance of a military legal assistance office”. If this office is unable to resolve the complaint, it may be forwarded to the DOJ. The DOJ will then analyze the complaint in order to determine if the United States government should take action.

The DOJ states that, if you are a servicemember who has had their car repossessed while on active-duty, you should contact your local Armed Forces Assistance Program Office. This office can help determine if the SCRA applies to your case. You may also choose to contact your local military legal assistance offices which can be found using the DOJ’s military legal office locator.