Military Servicemember Lawsuit Against Auto Lenders Under SCRA
Audet & Partners, LLP is investigating an increasing number of claims by military servicemembers under the Servicemembers Civil Relief Act (SCRA) that auto lenders may have conducted illegal repossessions and/or charged illegal rates of interests on auto loans to active military personnel. Under the SCRA, military personnel are afforded extensive protection under the law during periods of military service. These protections include, but are not limited to the following:
- Protection from Repossession. If you financed or leased a vehicle prior to entering military service, your lender or leasing company is prohibited from repossessing your vehicle during your period of active military service without a court order;
- Additionally, an affirmative burden is placed on the lender or leasing company to determine whether a borrower is entitled to protection under the SCRA, and failure to properly ascertain servicemember status may subject the lender to specific criminal penalties;
- Protection from Early Lease Terminations. If you have received orders for a permanent change of station or deployment, you are legally entitled to terminate your auto lease early and without penalty under protections afforded by the SCRA. This protection applies equally to dependents who are named as joint lessees. Additionally, if you terminate your lease under this law, you are entitled to recover all advance lease payments;
- Mandatory Interest Cap of 6%. Once you enter the active military, you are protected to interest on your loans not to exceed 6% so long as you submit written notice to your lender within 180 days following the end of your military service.
To learn more about the specific protections afforded by the SCRA you can click here to view the official letter to lenders by the Consumer Financial Protection Bureau, an agency which promulgates rules protecting servicemembers that are ultimately enforced by the United States Department of Justice.
If you are or have been an active servicemember and believe that your lender or leasing company may have taken actions in violation of the SCRA, you are urged to immediately contact Audet & Partners, LLP for a free, confidential case evaluation to determine whether you may have a claim for damages under protections afforded by the SCRA. You can contact us by competing and submitting the inquiry form on the right side of this page or by giving us a call at (800) 965-1461.