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Soldiers' and Sailors' Civil Relief Act |
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The Soldiers and Sailor's Relief Act was recently updated in a bill signed by President Bush on Dec 19, 2003. It's now called the Service Members' Civil Relief Act. Service Members' Civil Relief Act New law protects servicemembers 1/7/2004 - WASHINGTON (AFPN) -- A new law replacing the Soldiers' and Sailors' Civil Relief Act of 1940 provides servicemembers greater protections to handle personal financial and legal obligations, officials said. President Bush signed the Service Members' Civil Relief Act into law Dec. 19. "The focus of the (new act) is the same as under the SSCRA: To provide protections to servicemembers who have difficulty meeting their personal financial and legal obligations because of their military service," said Lt. Col. Patrick Lindemann, deputy director for legal policy in the office of the undersecretary of defense for personnel and readiness. This is significant, because it clarifies and updates SSCRA provisions and adds some protections. "Servicemembers on long-term deployments, or called to active duty, should not have to worry about their families in their absence being evicted from their quarters without sufficient legal protections, or that they are paying on a leased car or apartment that they can't use, or about civil legal proceedings they can't attend because of their deployment,” he said. "These are some of the situations the SCRA covers so that servicemembers are able to devote their energies to the military mission and the defense needs of the nation, and not on civil matters waiting for them at home," he said. An automatic 90-day stay of civil proceedings upon application by the servicemember is what Colonel Lindemann called "a significant change" in the new act. This applies to all judicial and administrative hearings. Previously, stays were discretionary with the courts. The new relief act also makes it clear the 6-percent limitation on interest rates for pre-service debts requires a reduction in monthly payments, and any interest in excess of 6 percent is forgiven, not deferred, Colonel Lindemann said. The SCRA also expanded the protection against eviction. Under the SSCRA, servicemembers and their family who entered into a lease for $1,200 or less could not be evicted without a court order. This amount is increased to $2,400 and added an annual inflation adjustment. For 2004, the maximum will be $2,465, significantly increasing the number of servicemembers entitled to this protection, Colonel Lindemann said. The new relief act also gives the servicemember who has received permanent change-of-station orders or who is being deployed for 90 days or more the right to terminate a housing lease with 30 days' written notice. Before, servicemembers could be required to pay for housing they were unable to occupy. One of the more significant new provisions is an added protection for motor-vehicle leases. Any active-duty servicemember who has received PCS orders outside the continental United States, or who is being deployed for 180 days or more, may terminate a motor-vehicle lease. The law prohibits early termination charges. "Now, servicemembers won't have to pay monthly lease payments for a car they can't use," Colonel Lindemann said. "Servicemembers may not always realize all the protections they have under the law," Colonel Lindemann said. "If servicemembers have questions about the SCRA or the protections that they may be entitled to, they should contact their unit judge advocate or installation legal assistance officer for further assistance." The Soldiers' and Sailors' Civil Relief Act (SSCRA) is a federal statute passed by Congress to allow military members to suspend or postpone some civil obligations so that the military member can devote his or her full attention to military duties. The original Soldiers' and Sailors' Civil Relief Act was passed during World War I. The statute was reenacted during World War II, and was later modified during Operation Desert Storm. The SSCRA is designed to protect active duty military members, reservists who are in active federal service, and National Guardsmen who are in active federal service. Some of the benefits under the SSCRA extend to dependents of active duty military members as well. • Reduced interest
rate on mortgage payments. "Although all service members receive some protections
under the SSCRA, additional protections are available to reserve
components called to active duty," said Lt. Col. Patrick Lindemann, deputy
director for legal policy in the Office of the Undersecretary of Defense
for Personnel and Readiness. Most active duty service members are familiar
with the provisions of the SSCRA that guarantee service members the right
to vote in the state of their home of record and protect them from paying
taxes in two different states.
The interest rate cap does not apply to federal
guaranteed student loans. However, according to Lindemann, the Department
of Education has in the past deferred or suspended payments on student
loans for reserve component military members called to active duty.
Service members should contact their lenders or schools to determine if
such a program has been implemented and its eligibility requirements. 6% Interest Rate Qualifying debts are debts that were incurred prior to the service member coming on active duty. The service member must be on active duty at the time of the request, and the service member’s military career must have materially affected the service member’s ability to pay on the debt. This provision does not apply to federally guaranteed student loans. The service member should contact his/her creditor (in writing) and request that his/her interest rate be reduced to 6% according to the provisions of the SSCRA. While not actually required by the law, it's a good idea to include a copy of the military orders placing the member on active duty, as part of the request. The burden is on the creditor to seek relief in court if the creditor believes that the service member’s military career does not materially affect his/her ability to pay.
Civil Proceedings Want to read the actual US Code 50 Regulation? Reference the Sailors' and Soldiers' Relief Act. As you can see, the SSCRA can be a big help to military members in times of need. In fact, the United States Supreme Court has declared that the Act must be read with "an eye friendly to those who dropped their affairs to answer their country's call." It actually provides many more protections than those listed here. If you think that you may qualify for protection under the SSCRA, you should come in for legal assistance to talk with an attorney. Information courtesy of Defenselink.mil website, posted for informational purposes
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