Who's Liable?
Senior Member
23 June 2005
MEMORANDUM FROM THE OFFICE OF THE SECRETARY OF THE ARMY
Recently, it has come to the attention of the Secretary of the Army that some
deployed Soldiers may have been threatened by creditors concerning debts the
Soldiers owed. It is important for deployed Soldiers and their leaders to
understand there are appropriate protections available to Soldiers.
Two laws provide a wide range of protections for Servicemembers. The
Servicemembers Civil Relief Act (SCRA) addresses civil judicial and
administrative proceedings, interest rates on pre-service credit cards and
mortgages, eviction, mortgage foreclosure, and residential and automobile rental
agreements. The Uniformed Services Employment and Reemployment Rights
Act (USERRA) protects the right of Servicemembers to return to their pre-service
civilian jobs. Soldiers and family members requiring more information about
these laws can contact their local Legal Assistance Office or refer to our Legal
Services portal.
Servicemembers Civil Relief Act
The SCRA is a complete revision of the old Soldiers’ and Sailors’ Civil Relief Act.
The SCRA provides protection to Active Duty, US Army Reserve, and members
of the National Guard called to active duty for 30 days or more, pursuant to a
contingency mission specified by the President or the Secretary of Defense.
Some provisions of the SCRA only apply to obligations incurred prior to entry on
active duty and thus may be more applicable to Reserve Component
Servicemembers. In part, the SCRA:
(1) Allows a Servicemember to stay court hearings or administrative
hearings if they are unable to appear due to their military service.
(2) Allows a Servicemember to reduce the interest rate on pre-service
loans and obligations to 6% per year, if military service materially
affects his/her ability to pay the debt. The Servicemember must request
this reduction in writing and include a copy of his/her orders.
(3) Requires a court order before evicting Servicemembers or their families
from premises for which the monthly rent does not exceed $2,534.32 for
the year 2005. This rental ceiling is adjusted annually for inflation.
(4) Requires a court order before foreclosure on property purchased by a
Servicemember prior to entry on active duty.
(5) Allows a Servicemember to terminate real property leases if: ordered to
active duty, in receipt of permanent change of station (PCS) orders, or
ordered to deploy for at least 90 days.
(6) Allows a Servicemember to terminate automobile leases. Pre-service
automobile leases may be cancelled if the Servicemember receives
orders to active duty for a period of 180 days or more. Automobile
leases entered into while the servicemember is on active duty may be
terminated if the Servicemember receives PCS orders to an overseas
location or deployment orders for a period of 180 days or more.
Soldiers or family members should contact their local Legal Assistance Office for
help in protecting their rights under the SCRA.
Uniformed Services Employment and Reemployment Rights Act
USERRA applies primarily to Reserve Component Soldiers (Reserve and
National Guard). It ensures that members of the Uniformed Services are entitled
to prompt return to their civilian employment upon completion of their service.
Servicemembers should be reinstated with the seniority, status, and rate of pay
they would have obtained had they remained continuously employed by their
civilian employer. The law also protects individuals from discrimination in hiring,
promotion, and retention on the basis of present and future membership in the
Uniformed Services. USERRA requires that a person who intends to invoke
these reemployment benefits must provide advance written or verbal notice of
the forthcoming military service to the employer. USERRA sets time limits for
invoking the reemployment rights based on the length of the period of active
service. The returning Servicemember is entitled to immediate reinstatement of
health insurance for the member and previously covered family members, with
no waiting period and no exclusion of preexisting conditions, except conditions
determined by the Government to be service-connected.
The National Committee for Employer Support of the Guard and Reserve
(ESGR) is the primary DoD organization to help Servicemembers protect their
rights under USERRA. Soldiers should contact ESGR for help in protecting their
rights under the USERRA. ESGR’s Ombudsman Services addresses questions
about the law, problems with individual supervisors or employers, and inquiries
about specific personnel practices. They will attempt to resolve employeremployee
conflicts involving military service. Additional information about
USERRA and contact information for ESGR is available from their website at:
http://esgr.org/.
Soldiers or family members should contact their local Legal Assistance Office for
help in protecting their rights under the USERRA.
MEMORANDUM FROM THE OFFICE OF THE SECRETARY OF THE ARMY
Recently, it has come to the attention of the Secretary of the Army that some
deployed Soldiers may have been threatened by creditors concerning debts the
Soldiers owed. It is important for deployed Soldiers and their leaders to
understand there are appropriate protections available to Soldiers.
Two laws provide a wide range of protections for Servicemembers. The
Servicemembers Civil Relief Act (SCRA) addresses civil judicial and
administrative proceedings, interest rates on pre-service credit cards and
mortgages, eviction, mortgage foreclosure, and residential and automobile rental
agreements. The Uniformed Services Employment and Reemployment Rights
Act (USERRA) protects the right of Servicemembers to return to their pre-service
civilian jobs. Soldiers and family members requiring more information about
these laws can contact their local Legal Assistance Office or refer to our Legal
Services portal.
Servicemembers Civil Relief Act
The SCRA is a complete revision of the old Soldiers’ and Sailors’ Civil Relief Act.
The SCRA provides protection to Active Duty, US Army Reserve, and members
of the National Guard called to active duty for 30 days or more, pursuant to a
contingency mission specified by the President or the Secretary of Defense.
Some provisions of the SCRA only apply to obligations incurred prior to entry on
active duty and thus may be more applicable to Reserve Component
Servicemembers. In part, the SCRA:
(1) Allows a Servicemember to stay court hearings or administrative
hearings if they are unable to appear due to their military service.
(2) Allows a Servicemember to reduce the interest rate on pre-service
loans and obligations to 6% per year, if military service materially
affects his/her ability to pay the debt. The Servicemember must request
this reduction in writing and include a copy of his/her orders.
(3) Requires a court order before evicting Servicemembers or their families
from premises for which the monthly rent does not exceed $2,534.32 for
the year 2005. This rental ceiling is adjusted annually for inflation.
(4) Requires a court order before foreclosure on property purchased by a
Servicemember prior to entry on active duty.
(5) Allows a Servicemember to terminate real property leases if: ordered to
active duty, in receipt of permanent change of station (PCS) orders, or
ordered to deploy for at least 90 days.
(6) Allows a Servicemember to terminate automobile leases. Pre-service
automobile leases may be cancelled if the Servicemember receives
orders to active duty for a period of 180 days or more. Automobile
leases entered into while the servicemember is on active duty may be
terminated if the Servicemember receives PCS orders to an overseas
location or deployment orders for a period of 180 days or more.
Soldiers or family members should contact their local Legal Assistance Office for
help in protecting their rights under the SCRA.
Uniformed Services Employment and Reemployment Rights Act
USERRA applies primarily to Reserve Component Soldiers (Reserve and
National Guard). It ensures that members of the Uniformed Services are entitled
to prompt return to their civilian employment upon completion of their service.
Servicemembers should be reinstated with the seniority, status, and rate of pay
they would have obtained had they remained continuously employed by their
civilian employer. The law also protects individuals from discrimination in hiring,
promotion, and retention on the basis of present and future membership in the
Uniformed Services. USERRA requires that a person who intends to invoke
these reemployment benefits must provide advance written or verbal notice of
the forthcoming military service to the employer. USERRA sets time limits for
invoking the reemployment rights based on the length of the period of active
service. The returning Servicemember is entitled to immediate reinstatement of
health insurance for the member and previously covered family members, with
no waiting period and no exclusion of preexisting conditions, except conditions
determined by the Government to be service-connected.
The National Committee for Employer Support of the Guard and Reserve
(ESGR) is the primary DoD organization to help Servicemembers protect their
rights under USERRA. Soldiers should contact ESGR for help in protecting their
rights under the USERRA. ESGR’s Ombudsman Services addresses questions
about the law, problems with individual supervisors or employers, and inquiries
about specific personnel practices. They will attempt to resolve employeremployee
conflicts involving military service. Additional information about
USERRA and contact information for ESGR is available from their website at:
http://esgr.org/.
Soldiers or family members should contact their local Legal Assistance Office for
help in protecting their rights under the USERRA.