The Servicemembers Civil Relief Act protects active military from disclosures, high interest rates, and more. Learn why SCRA compliance can get complex for lenders.
The brave people who enlist in the United States military make immense and sometimes grave sacrifices for their country. But they get to enjoy a few perks, too. Case in point: the Servicemembers Civil Relief Act. In contrast many consumer protection laws, the SCRA is an old one—it dates all the way back to the Civil War era. Under the act, soldiers, sailors, airmen, marines, coast guardsmen, and other commissioned officers are protected from legal action while on active duty. In other words, you can’t sue anyone currently serving in the US military.
This is only an overview of the SCRA. Keep in mind that many of these protections apply to service members’ spouses and families, too. To ensure your organization doesn’t violate the law, make sure to consult with a trusted legal or compliance advisor.
Need to speak to an expert about this or any other consumer lending compliance matter? Contact us.