We have a borrower than signed a car dealer contract on 1/8. On 1/22 the borrower entered the military. On 1/25 the loan funded. No down payment, deposit, or payment was made prior to the borrower entering service. Borrower is now being relocated overseas and cannot take the car with them, and would you to voluntarily turn the car over to us. Collections believes this individual is covered by SCRA and would not be responsible for any deficiency amount after we sell the car. In my opinion this borrower would not be covered by SCRA. Does anyone have any insight?

According to 50 USC 3952 Protection under installment contracts for purchase or lease. "This section applies only to a contract for which a deposit or installment has been paid by the servicemember before the servicemember enters military service."

Thank you,

Your cite on the payment requirement is correct. I'm not sure if this was to dissuade a person from going from the car dealer to the recruiters office or that it helps verify it was a genuine purchase because a payment was made prior to service. I assume "and would you to voluntarily turn the car over to us" he would like to voluntarily turn the car over? I would document, document, document. I've read about no cases on this but personally believe it meets the spirit and intent so long as the borrower does so freely.