the servicemembers civil relief act - how does it impact collections

The Servicemembers

Civil Relief Act:

How It Affects Collections

Justin B. Hosiephone: 423.490.7564

email:  jhosie@hudco.comwww.hudco.com

Background: History, Purpose, and Scope

• Where did the SCRA become law?• What is the purpose?• Who is a Servicemember?• Who does is protect?• Are non-servicemembers protected?• When the SCRA is applicable?• How long do the protections apply?• How far does the SCRA reach?

Limits, Prohibitions, and Waivers

• Has service materially affected the consumer?• Can the consumer waive their rights?• Can I treat a consumer differently because he/she exercised these

rights?• Are debt collection calls prohibited?• Can you compel the servicemember into court?• What about after 90 days?• Can you get a default judgment?• Will the consumer “time out” of the debt?• Is there an SCRA rate cap?• Was the servicemember really activated?• Statute of Limitations?

Special Circumstances: Eviction, Property Purchase, Mortgages, Leases, and the

SCRA Foreclosure Protections

• Eviction Proceedings?• Installment Contract for Purchase of Property?• Mortgages?• Termination of Residential or Motor Vehicle

Leases?• Anticipatory Relief?

Actions, Fines, and Damages

• What does a violation cost?• Civil Penalties?• Other Costs?

Recent FederalRegulatory Actions

• Capital One• National Servicer Settlement• Countrywide• Saxon

Contact Information

Justin B. HosieHudson Cook, LLP

6005 Century Oaks Drive, Suite 500

Chattanooga, TN 37416

423.490.7564

jhosie@hudco.com