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#485510 - 01/19/06 03:13 AM Car Repo & SCRA
Jennifer R Offline
New Poster
Joined: Mar 2005
Posts: 10
Missouri
One of my old soldiers called to tell me that his car was repossessed, because the army wasn't paying him for several months - unfortunately this can be and is a common issue, especially for reservists called up. I asked if he had invoked his rights under the SCRA and he didn't know what I was talking about. Again not surprised this isn't something all recruiters mention to soldiers when they are enlisting. My question is what recourse does he have. He has the money to pay the loan off now that his pay is straightened out. Does the bank need to remove the repo from his credit bureau and reduce the fees and interest from his loan and allow him to pay it off in full?

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Lending to Servicemembers (SCRA, JWNDAA), War, Terrorism
#485511 - 01/19/06 04:38 PM Re: Car Repo & SCRA
Gotwood Offline
Platinum Poster
Joined: May 2001
Posts: 715
Look to section 302 of SCRA. (a)(1)(B) the lease or bailment or personal property, may not be rescinded or terminated for a breach of terms of the contract occurring before or during that person's military service, nor may the property be repossessed for such breach without a court order.

You need to gather all facts in this case. When was the contract signed? This section only applies to a contract entered into before "military service". Was the auto repoed with a court order? If not, he should be contacting the bank's counsel (and possibly his own). Most bank's won't want the negative publicity and will work something out with him. He should also insist his credit bureau info accurately reflect the situtation. If he was late on payments, that is a fact which can not be disputed.

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#485512 - 01/20/06 02:24 AM Re: Car Repo & SCRA
Jennifer R Offline
New Poster
Joined: Mar 2005
Posts: 10
Missouri
I would agree with you and there are always more than one side to a story. I will advise him to go to JAG and see if they have any information for him as well as contacting the bank. You are right they won't want the publicity I am sure. And yes if he was late he was late, but I don't think there was a court order. Thank you for your reply.

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