InfoBytes Blog
CFPB, DOJ issue letter to auto companies on SCRA provisions
On July 29, the CFPB and DOJ issued a joint letter reminding auto finance companies of legal protections for military families under the Servicemembers Civil Relief Act (SCRA). Among other things, the letter outlines several SCRA provisions that apply to vehicle financing, including: (i) prohibiting vehicle repossession without a court order during the borrower’s military service if a borrower financed or leased the vehicle prior to entering military service; (ii) permitting servicemembers and joint lessee dependents to terminate motor vehicle leases early, and without penalty, after entering military service or receiving qualifying military orders during active duty; and (iii) capping the amount of interest on loans incurred prior to military service to 6 percent per year.