document will provide answers to many of the questions you may be receiving about the Service members Civil Relief Act (SCRA). Signed into law in 2003, this action offers certain financial protections to military members. Please feel free to share this information with your command families and within your ombudsman network.

1. ServicememberS civil
relief Act Simplified
What Is the Servicemembers Civil the first of every month, and he notifies his landlord (and
gives the landlord a copy of his orders) on 18 Jun that
Relief Act? he wishes to terminate the lease under the provisions
In 2003, the Soldiers and Sailors Civil Relief Act was re- of the SCRA, the earliest termination date is Aug. 1 (the
written and re-named the Servicemembers’ Civil Relief Act next rent is due July 1, and 30 days later is Aug. 1). If some
(SCRA). The bill was signed into law by President George W. other arrangement is in place, other than monthly rent,
Bush on 19 Dec. 2003. The law now governs legal protec- the earliest termination of the lease is the last day of the
tions for members of the U.S. military. month following the month in which the notice is given.
So, if notice is given on June 20, the earliest termination
Who Is Covered? date would be July 31.
Reservists and members of the National Guard (when in ac- The SCRA gives the military member the right to termi-
tive federal service) also are protected under the law. SCRA nate the lease early, but the law does not require the
(for all) begins on the first day of active duty, which means landlord to decrease the amount of total rent for the
when the person ships out to basic training (basic training property, nor does the law protect remaining non-mili-
and job-school are considered active duty for guard and tary roommates (unless, of course, they are the member’s
reserve personnel, as well as active-duty personnel). Some legal dependents).
protections under the act extend for a limited time beyond
active-duty discharge or release but are tied to the dis- 2. Automobile leases. Military members also may terminate
charge/release date. Additionally, some of the act’s protec- automobile leases in certain circumstances. Just like with
tions extend to the member’s dependents. residential leases, if a member enters into an automobile
National Guard members recalled for state duty also are lease before going on active duty, the member may re-
protected by the Servicemembers’ Civil Relief Act in cer- quest termination of the lease when they go onto active
tain circumstances. Guard members are entitled to SCRA duty. The act specifically covers lease of a motor vehicle
protection when called to state active duty under Title 32, if used, or intended to be used, by a service member or a
the duty is because of a federal emergency; the request for service member’s dependents for personal or business
active duty is made by the president or secretary of defense; transportation.
and the member is activated for longer than 30 days. However, for this to apply, the active duty must be for
at least 180 continuous days. So, if a person joined the
Major Legal Protections Reserves, and had orders for basic training and technical
school, the total of which was only 120 days, the automo-
1. Termination of residential leases. The SCRA allows indi- bile lease could not be terminated under the act.
viduals to break a lease when they go onto active duty, if
the lease was signed before going onto active duty. Ad- Military members making a PCS move or who deploy for
ditionally, the act allows a service member to terminate a 180 days or longer, may terminate such leases.
residential lease signed while in the military, if the mem- To terminate the lease, the member must make the re-
ber receives permanent change of station (PCS) orders or quest in writing, along with a copy of orders. The mem-
orders to deploy for a period of not less than 90 days. ber may deliver the notification by hand, by commercial
This protection covers “lease of premises occupied, or carrier, or by mail (return receipt requested). Additionally,
intended to be occupied, by a servicemember or a ser- the member then must return the vehicle to the lessor
vicemember’s dependents for a residential, professional, within 15 days of delivery of the termination notice.
business, agricultural or similar purpose.” The lessor is prohibited from charging an early lease ter-
To break a lease under these provisions, the service mination fee. However, any taxes, summonses, title and
member must make the request in writing and must registration fees, and any other obligation and liability of
include a copy of their orders (active duty, PCS, or deploy- the lessee in accordance with the terms of the lease, in-
ment orders). The member may deliver the notification cluding reasonable charges to the lessee for excess wear,
by hand, by commercial carrier or by mail (return receipt use and mileage that are due and unpaid at the time of
requested). termination of the lease, shall be paid by the lessee.
The earliest termination date for a lease that requires 3. Evictions from leased housing. Service members may
monthly rent is 30 days after the first date on which the seek protection from eviction under SCRA. The rented/
next payment is due, following proper notification of leased property must be occupied by the service mem-
termination. For example, if Sailor John pays his rent on ber or their dependents for the purpose of housing, and
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2. the monthly rent cannot exceed $2,400 (for 2004; the If the service member asks for a stay, or postponement,
actual amount is adjusted automatically each year for the court must grant a minimum 90-day stay, if:
inflation). A. The service member submits a letter or other commu-
The service member or dependent who has received nication setting forth facts stating the manner in which
notice of an eviction must submit a request to the court current duty requirements materially affect the service
for protection under the SCRA. If the court finds that the member’s ability to appear and stating a date when the
service member’s military duties have materially affected service member will be available to appear; and
his ability to pay his rent on time, the judge may order a B. The service member submits a letter or other com-
stay, or postponement of the eviction proceeding for up munication from their commanding officer stating that
to three months or make any other “just” order. current duty prevents the service member’s appearance
4. Installment contracts. The SCRA gives certain protections and that military leave is not authorized at the time of the
against repossessions for installment contracts (including letter.
automobile leases). If the contract was signed before go- The act specifically states that a service member commu-
ing on active duty and at least one payment was made nicating with the court to request a stay does not consti-
before that time, the creditor cannot repossess the prop- tute an appearance for jurisdictional purposes and does
erty while the member is on active duty, nor can they not constitute a waiver of any substantive or procedural
terminate the contract for breach without a court order. defense (including a defense relating to lack of personal
jurisdiction). Under the old act, some courts held that
5. Six percent interest rate. If a service member’s military merely communicating with the court implied that the
obligation has affected the ability to pay financial obli- member agreed to jurisdiction of the court.
gations such as credit cards, loans, mortgages, etc., the
service member can have his/her interest rate capped A service member who is granted a stay may request an
at 6 percent for the duration of the service member’s additional stay, if it can be shown that military require-
military obligation. ments affect their ability to appear (commander’s letter
also is needed). However, the court is not obligated to
Qualifying debts are debts that were incurred by the grant the additional stay. If the court refuses to grant
service member, or the service member and their spouse an additional stay of the proceedings, the court must
jointly, before coming on active duty. Debts incurred appoint counsel to represent the service member in the
after going on active duty are not protected. action or proceeding.
Notice that this provision applies only if a service mem- If a default judgment is entered in a civil action against
ber’s military service affects their ability to pay. However, a service member during their military service (or within
the burden is on the creditor to seek relief in court if the 60 days after termination of, or release from, such military
creditor believes the service member’s military career service), the court entering the judgment must, upon ap-
does not materially affect the ability to pay. The credi- plication by or on behalf of the service member, reopen
tor must comply, unless they get a court order stating the judgment for the purpose of allowing the service
otherwise. member to defend the action if it appears that:
For an obligation or liability of a service member to be A. The service member was materially affected by mili-
subject to the interest-rate limitation, the service member tary service; and
must provide to the creditor written notice and a copy of
the military orders calling the member to military service B. The service member has a meritorious or legal defense
and any orders further extending military service not to the action or some part of it.
later than 180 days after the date of the service member’s Enforcement of obligations, liabilities, taxes. A service
termination or release from service. member or dependent may, at any time during, or within
Upon receipt of notice, the creditor must reduce the six months of completing their service, apply to a court for
interest rate to a maximum of 6 percent, effective the first relief of any obligation or liability incurred by the service
day of active duty (even if the service member makes the member or dependent prior to active duty or in respect to
request at a later time). any tax or assessment made before the service member’s
active military service. The court may grant stays of enforce-
The law states that no interest above 6 percent can ac- ment during which time no fine or penalty can accrue.
crue for credit obligations while on active duty (for debts
incurred before going onto active duty), nor can that Additionally, the act prevents service members from a form
excess interest become due once the service member of double taxation that can occur when they have a spouse
leaves active duty (that was a “trick” some creditors tried who works and is taxed in a state other than the state in
under the old law). Instead, that portion above 6 percent which they maintain their permanent legal residence. The
is forgiven permanently. Furthermore, the monthly pay- law prevents states from using the income earned by a
ment must be reduced by the amount of interest saved service member in determining the spouse’s tax rate when
during the covered period. they do not maintain their permanent legal residence in
that state.
6. Court proceedings. If a service member is a defendant
in a civil court proceeding, the court may, on its own
motion, grant a 90-day delay in the proceedings. The
provision applies to civil lawsuits, suits for paternity, child-
custody suits, bankruptcy debtor/creditor meetings and
administrative proceedings.
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