The Servicemembers Civil Relief Act (SCRA) Protects Active Duty Military Personnel Against Repossession

16 Sep The Servicemembers Civil Relief Act (SCRA) Protects Active Duty Military Personnel Against Repossession

The Servicemembers Civil Relief Act (SCRA), signed into law on December 19, 2003, limits collection tactics and enforcement of claims against active duty military personnel.  In this post, I will discuss how the SCRA protects activy duty military personnel from repossession.

Section 302 (Protection Under Installment Contracts for Purchase or Lease) of the SCRA forbids self-help repossession if a servicemember made a payment under a purchase contract before entering in to active duty in the military.  Repossession may only be taken with a court order and the SCRA makes it a criminal offense to knowingly repossess property in violation of this rule.  If a court orders the repossession, it may order the creditor to return the servicemember’s payments.  The court may also stay repossession proceedings if it finds that the servicemember’s ability to comply with the contract is materially affected by military service.

This section of the SCRA applies to all contracts for the purchase or lease of real or personal property, including motor vehicles.

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