As our troops continue to return home from service in Iraq, Afghanistan and other parts of the world, here is a reminder of the special rights that are afforded to our service members under the Service Members Civil Relief Act (“SCRA”)[1].
The SCRA applies to service members on “active duty” and their dependents. It is too lengthy to be summarized here, but some key provisions include:
Interest rate reductions: creditors are required to reduce interest rates on any liabilities or obligations incurred before the service member started active duty. The interest rate cannot be higher than 6%. This provision can be applied retroactively, but notice must be given to the creditor no later than 180 days after leaving active duty.
Default judgments: No default judgments can be entered against anyone in the military. Creditors and other plaintiffs have an obligation to swear to the court that they have investigated and confirmed that you are not in the military.
If you have recently returned from military service, checked your credit report and learned there is a default judgment against you, you have rights under the SCRA. Contact a lawyer who is experienced at vacating default judgments brought by creditors and debt buyers such as Palisades Collection, Capital One, LR Credit, RAB Performance Recoveries, Rushmore Recoveries, LVNV Funding. A good lawyer can help you get the judgment vacated.
-Sheril Stanford