Violations of the Servicemembers Civil Relief Act: An Issue of Growing Concern
Kirk Jensen spoke at the Women in Housing & Finance Regulatory Taskforce Brown Bag Lunch: "Violations of the Servicemembers Civil Relief Act: An Issue of Growing Concern" on June 8, 2011.
Congress enacted the Servicemembers Civil Relief Act (SCRA) to provide financial protections to members of the armed services, who, while serving on active duty, may face difficulty in meeting certain financial obligations at home,such as rent or mortgage payments. For example, the SCRA prohibits lenders from charging active-duty members of the military more than six percent interest on their mortgages. The SCRA also provides protections to servicemembers regarding mortgage foreclosures during the servicemember’s period of active duty and for nine months afterward. One major bank has recentlydisclosed problems with SCRA compliance, including overcharging thousands of service members. Recently, the press reported that the bank agreed to pay a $27 million settlement in connection with allegations of SCRA violations. Federal banking and law enforcement agencies have also alleged SCRA compliance problems at other institutions. The House Veterans’ Affairs Committee held a hearing, several members of Congress introduced bills, and the U.S. Department of Justice conducted investigations. Kirk D. Jensen, an expert in the SCRA, provided his insights regarding these SCRA developments.
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