In the year 1940, the Servicemembers Civil Relief Act (also known as the SCRA) was enacted into law. The intention of this act was to save military personnel from dealing with lawsuits while they were on duty. The main reason the government introduced such an act in the first place is quite simple: they want all deployed Servicemembers to be able to concentrate on their duties and responsibilities without having to deal with the stress of any kind that may be awaiting them back at home.
If you are a member of the U.S. Armed Forces, then it is in your best interest to know and understand that the Servicemembers Civil Relief Act helps to either postpone or suspend any obligations that you may have in regards to paying off particular debts. Debts that are included in this act are those that pertain to mortgages, taxes, termination of any leases and even credit card debts. The bottom line is that any debt that existed before you joined the military can be subjected to the SCRA.
One of the most important provisions in the SCRA is how it assists deployed military personnel. Servicemembers on active duty are eligible for reduced interest payments for a temporary period. Certain debt interest rates can be reduced from rates as high as 22-25% to something as low as 6%. This can amount to significant cash savings. This is applicable even if these debts have been occurred jointly with the spouse of someone in the military. Servicemembers who can apply for such an interest rate reduction are those who get called away to active duty that lasts more than thirty consecutive days. In special circumstances, this protection of the SCRA may extend to families of qualifying Servicemembers. It should be noted that this interest rate reduction is only temporary and enforceable while active duty is going on. When active duty ends, the interest reverts to the original rates.
Unfortunately, even though the Servicemembers Civil Relief Act has been in force for some time, some debt collectors still try to ignore it and prey on the families of active forces personnel to try and get the money owed. These creditors have no legal right to try and repossess any property or terminate any lease contracts or similar contracts without a court order - and that can be very hard to obtain. The SCRA provides legal protection in these cases. If you have fallen victim to unscrupulous debt collectors, then you are well within your legal rights to take the debt collection agency to court.
Sergei Lemberg, Esq. is the Principal of Lemberg & Associates, a law firm specializing in fair debt collection law, lemon law, and other consumer law.
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