SCRA News and Amendments (Proposed and Actual)

Our collection of News and Essays:

• KY Court Rules Modification to Child Support violated SCRA  
• Pro se soldier had submitted copy of orders and had requested stay. Court agreed to hold telephonic hearing at 1:30 p.m, but did not call case until 3:30 p.m. at which time soldier was unavailable. Court raised child support and, when increased amount was not paid, issued contempt order. Court of Appeals reversed all and remanded.
• SSN Numbers are now randomly assigned as of June 25, 2011.  No longer will you be able to determine where a SSN was issued by looking at digits. Click for details:  www.socialsecurity.gov/employer/randomizationfaqs.html
• Utah Couple Sue Bank For Not Lowering Interest Rate
  • In light of U.S. Bancorp’s pending lawsuit, its spokesman Tom Joyce admitted the bank erred in not reducing the interest rate on the Nehrings’ car loan from 10.14 percent to 6 percent soon after Sgt. 1^st Class Daniel Nehring was deployed to Iraq in 2010.
  • The bank will now retroactively reduce the interest rate and credit the account. However, the Nehrings wish to pursue their action to resolve the problem for the many other military families in similar situations.
• The 11^th Wing Legal Office provides free legal advice on personal civil legal matters to active and retired military members and their dependents.
  • The new walk-in hours are Tuesdays from 2PM to 3:30PM and Thursdays from 10AM to 11:30AM.
• In Richmond, a court order demands that any discovery related to a US Army Reserve recently sent to Iraq be postponed.
  • The case involves an Eastern Kentucky University student, whose death occurred due to a collision with a train conducted by Matt Lasters, a US Army Reserve now on active duty.
• The 2010 SCRA update allows for consumers to sue when lenders do not affirmatively state whether or not a debtor is on active military duty.
• Subsidiaries of Bank of America and Morgan Stanley will pay Iraq and Afghanistan military veterans $22 million to settle mortgage foreclosure claims.
  • The subsidiaries wrongfully foreclosed on about 180 service members. As part of the settlement, employees of the subsidiaries are required to attend SCRA training sessions.
• JPMorgan Chase & Co., the second-largest US bank, has removed David Lowman from his mortgage chief position after JPMorgan settled to pay $56 million to active duty service members.
  • The bank had not reduced mortgage rates for deployed soldiers and had foreclosed on 27 service members.
• The Protecting Servicemembers from Mortgage Abuses Act, introduced in March and spearheaded by Senator Sheldon Whitehouse (D-RI), seeks to push for compliance with SCRA.
  • The bill proposes doubling the criminal penalties for foreclosure and eviction protection violations and extending the period of foreclosure protection after returning from deployment from 9 months to 24 months.
• Complementing SCRA, the Military Homeowners Assistance Program (HAP) provides servicemembers with foreclosure help and financial aid.
• A Citigroup initiative to increase consideration for veterans with financial difficulties amid the economic environment is reducing existing mortgage interest rates by 2.5 percent for two years for wounded or disabled servicemembers returning from deployment or their surviving spouses.
  • The Citi Disabled Veterans Mortgage Relief Program is only applicable to loans which are first mortgages owned by CitiMortgage.
• Fighting Fraud in Bankruptcy Act, introduced in May by Senator Patrick Leahy (D-Vt.), would require mortgage lenders to certify foreclosures are in compliance with SCRA.
  • The bill seeks to authenticate the authority of the Executive Office of the U.S. Bankruptcy Trustee (EOUST) to fight creditor fraud.
• Revised examination procedures for SCRA issued in May by the Office of the Comptroller of the Currency (OCC).
• Effective September 1, 2011 in Texas, the property code will require notice sent to debtors in default stating the debtor to assert his or her rights as a servicemember or spouse of a servicemember.
  • The law, which was sponsored by Senator Leticia Van de Putte (D-San Antonio), seeks to provide servicemembers with protection from homeowners associations foreclosing for overdue membership fees.
• Changes in Reporting under the Servicemembers Civil Relief Act - Active Duty Termination Date Reporting October 2009
• Judge's Guide
• Military Spouses Residency Relief Act - PL111-97 Effective November 11, 2009  amended the Servicemembers Civil Relief Act.
  • Allows military spouses who move out of a state with their servicemember under military orders to have the option to continue to claim the same state of domicile even though temporarily living in other state where servicemembers spouse is stationed.   
• Small Business Assistance and Servicemembers Protection Act of 2009 - HR 3949  November 2009 - Not Yet Law 
  • Would give the government or individuals to sue businesses or people that violate a servicemember's member’s legal or financial protections under the Servicemembers’ Civil Relief Act. The government can seek penalties of up to $110,000, and a service member can seek monetary damages for violations.
  • Servicemembers may cancel service contracts, cell phones, including family plans; retail and vehicle leases; and utilities, Internet and cable services without termination fees, even if family members names are also on contracts.  
  • Burial Rights of parents beside their children in veterans cemeteries if military sons/daughters have no dependents
• Alabama Court of Civil Appeals. Klaeser v. Milton, No. 2080722;
  • Held it was harmless error for trial court to grant default judgment against active servicemember, even though no SCRA Affidavit was submitted. Default judgments under the act are voidable, rather than void, and that servicemember offered no explanation for waiting five months to apply for the court for relief after she became aware of the action and, consequently, did not demonstrate that her military service materially affected her ability to defend the action.
• California Law Protects Servicemember Parents' Custodial Rights;
  • An organization named Fathers and Families helped an active duty servicemember retain his child custody rights.