LACKLAND AIR FORCE BASE, Texas –
The Servicemember's Civil Relief Act of 2003 provides a wide range of protections for people entering the military, members called to active duty and deployed servicemembers.
It's a federal law that gives all military members important rights as they enter active duty. It covers such issues as rental agreements, security deposits, prepaid rent, evictions, installment contracts, credit card interest rates, mortgage interest rates, mortgage foreclosures, civil judicial proceedings and income tax payments.
The SCRA, which replaced the Soldiers and Sailors Civil Relief Act of 1940, is intended to postpone or suspend certain civil obligations to enable the military member to devote full attention to duty and relieve stress on their family members during deployment.
It provides for the temporary suspension of judicial and administrative proceedings and transactions that may adversely affect the civil rights of service-members during their military service.
It also provides many important protections to military members while on active duty. For example, the SCRA allows service members who receive permanent change of station orders or who are deployed for 90 days or more the right to terminate a housing lease.
There have been recent updates to the SCRA that expand upon these protections. Before the SCRA was updated, servicemembers and their families were protected from eviction from housing while on active duty due to nonpayment of rents $1,200 per month or less. Under the new law, which incorporates today's higher cost of living, leases up to $2,932.31 are covered, with annual adjustments made to account for inflation.
The new changes to the SCRA also allow service-members to terminate cell phone contracts under certain conditions. Basically, any time a military member receives orders to go to a location where they cannot have cell phone service for more than 90 days, they have the right to terminate the contract. If they are on a family plan and move or deploy, the service can be terminated by whoever is paying for the plan.
Additionally, the SCRA makes it clear that early termination fees are prohibited when terminating a residential lease because the servicemember has received orders to move or deploy. When military members receive PCS orders or deploy to a location for more than 90 days, they have the right to terminate their lease.
In order to terminate the lease, they must give written notice to the landlord or housing company. Verbal notice is not sufficient. If the servicemember is on a month-to-month lease, the termination becomes effective 30 days after the first date on which the next rental payment is due, subsequent to the date when the notice of termination is given.
For example, if someone pays rent on the first of the month, and gives notice on April 1, then the next rental payment is due and payable on May 1. May would then be the effective date of termination and no rent would be due. Any security deposit paid must then be returned to the servicemember upon termination of the lease.
There are also provisions in the SCRA protecting leases of motor vehicles. Military members should seek the advice of a legal assistance attorney for more information about the SCRA and how it affects them.
JPMorgan Chase recently announced new programs for servicemembers that expand upon SCRA protections. Beginning today, the following programs are effective:
· Eligible borrowers' effective mortgage interest rates will be lowered to 4 percent while members are on active duty and for a year thereafter, subject to any required approvals. Under this program, Chase will put in place a rebate or similar program for members who are protected under the SCRA.
· For military members who have served on active duty as far back as Sept. 11, 2001, and who are delinquent or having trouble making their mortgage payments, Chase has created a program that will go beyond the government's Home Affordable Modification Program requirements. Eligibility for this program is subject to required regulator and investor approvals.
Additionally, Chase has issued a statement that they will not foreclose on any currently deployed active military personnel. If a servicemember believes they were mistakenly foreclosed upon because they were covered by the SCRA at the time of foreclosure, Chase says that they will forgive all remaining mortgage debt.
Military personnel who believe they were improperly foreclosed upon by Chase should contact a legal assistance attorney.
Military borrowers are also advised to call the 24-hour Chase mortgage hotline at 877-469-0110 with any questions.
The Lackland legal office can answer any questions about the issues discussed in this article. Call 671-3362 for an appointment.
Information is also available at the Air Force Legal Assistance website at
https://aflegalassistance.law.af.mil.