The Servicemembers Civil Relief Act (SCRA) protects active duty military personnel and other deployed service members from losing their home and other assets while they are serving active duty, temporarily stationed somewhere else, or permanently relocated. Deployed service members also have specific protections regarding their credit card debt, taxes, loans, leases, and other various services that require a contract under the SCRA. Active duty personnel must request and be granted SCRA protections from an armed forces legal assistance office. If a bank, business, or lender is not honoring your SCRA protections and you are a currently deployed or soon to be a deployed active duty service member, please contact Doucet & Associates Co LPA for help by calling (614)944-5219.
Mortgages and Loans
When it comes to a mortgage loan, active duty personnel are allowed to receive reduced interest rates of six percent under the SCRA. You are also allowed to receive a six percent interest rate for credit cards, auto loans, and other loans. Reduced interest rates help the families of the active duty stay in their homes, keep their cars, and reduce the chances of them falling into foreclosure and debt. However, it is only available at the time you enlist.
Automobile and Property Leases
The SCRA also gives rights to active duty personnel regarding automobile leases and apartment leases. You can terminate a car lease if you are called for active duty lasting 180 days or more, or if you receive orders to permanently relocate. You can also cancel a property lease for an apartment if you are deployed for more than 90 days or relocated permanently. If you choose to not cancel your property lease, then while serving active duty you are protected against being evicted if your rent is under certain financial requirements. The financial requirement for 2017 is the rent must be lower $3,584.99 per month and if it is lower the landlord must get a court order to get an eviction. This rate is adjusted a little every year.
Your credit report is protected from being negatively impacted under the SCRA when you have loan rates adjusted. While you have SCRA protections, lenders cannot change the terms of your current loans, take back your assets because you are making lower payments, or refuse to grant a future loan because you previously had SCRA protections. Lenders also cannot report lower payments granted by the SCRA to credit reporting agencies as insufficient payments, which would hurt your credit score. If your credit report is showing errors from when you had SCRA protections, please click here to learn more about how to fix a credit report error.
The lawyers at Doucet & Associates in Ohio help active duty personnel who are being taken advantage of by businesses and being denied their granted SCRA protections. If you were granted SCRA protections but your protections are not being honored, please call us today at (614)944-5219 or click here to send us a message online for help. Also please read one of our other articles about the Servicemembers Civil Relief Act.