The SCRA provides strong protections for servicemembers under installment contracts for lease or purchase. The SCRA states that contracts by servicemembers for real or personal property, whether to own or lease, may not be rescinded (cancelled) or terminated for a breach of contract by the servicemember. Additionally, the property under the contract may not be repossessed without a court order. These protections only apply to contracts for which a deposit or installment is paid before the servicemember enters military service.
In order for a repossession to occur, the lien holder must seek a court order. The court hearing the case may order that the servicemember is refunded all or part of payments under the contract as a condition of the lien holder repossessing the property. The court may also either stay (put on hold) the proceedings as long as necessary or make another decision that the court believes is fair to all parties.
What if my creditor doesn’t comply?
When lien holders don’t properly comply with the SCRA, you can take action, and you may be entitled to compensation. Often times, an experienced military justice attorney can have the issue resolved without going to court. Lien holders who don’t comply with the SCRA risk paying for your losses and damages resulting from their non-compliance, paying your attorney’s fees, and paying fines. They can even be prosecuted for a federal misdemeanor.
If you or someone you know needs help navigating the Servicemembers Civil Relief Act, please contact Military Justice Attorneys today to speak with an experienced military justice lawyer.