Servicemembers are entitled to all of the same protections offered to consumers under state and federal consumer protection and debt collection laws such as the federal Fair Debt Collection Practices Act (FDCPA). Sometimes, service members are afforded additional protections under the federal Servicemembers Civil Relief Act (“SCRA,” 50 USC §501, et. seq.).  

The SCRA’s purpose is to shield members of the US Army, Navy, Air Force, Coast Guard, and Marine Corps from collection actions and foreclosures while they are serving the country. SCRA protections are extended to servicemembers on active duty—including activated reservists and national guard members activated for more than 30 consecutive days.

The SCRA prohibits creditors and lienholders—including HOAs—from obtaining civil default judgments or pursuing non-judicial foreclosure against service members. The law also allows activated reservists and redeployed soldiers to terminate residential leases effective “30 days after the next rent payment is due.” 50 USC. § 3955(d)(1).  

Also, interest on debts predating a servicemember’s military service is capped at 6% during the period of service and for a year following discharge. Therefore, an HOA cannot charge an active servicemember interest above 6% for assessments due before deployment.

Notably, the SCRA applies to all creditors and is not limited to third-party debt collectors, as with the FDCPA. Some states have adopted statutes similar to the SCRA, which provide additional protections to HOAs and servicemembers in those states.

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