Federal safeguards that prevent unlawful repossession of vehicles and leased property while service members are on active duty.
How the SCRA Protects Service Members From Vehicle Repossession
The SCRA provides strong protections for service members under installment contracts for the lease or purchase of real or personal property. Under the SCRA, contracts entered into by service members for property, whether owned or leased, may not be rescinded or terminated due to a breach of contract without the involvement of a court of law. In addition, property subject to such a contract may not be repossessed without a court order.
These protections apply only to contracts for which a deposit or installment payment was made before the service member entered military service. When applicable, the SCRA ensures that creditors cannot take unilateral action against service members while they are serving in the military.
