Compliance Q&A: The Servicemembers Civil Relief Act

Does the SCRA allow a servicemember to terminate an auto lease?

June 1, 2012

Q: Does the Servicemembers Civil Relief Act (SCRA) allow a servicemember to terminate an auto lease?

A: Yes, the servicemember can terminate a lease under the SCRA if (s)he entered into a lease prior to entering active duty for 180 days or more; once on active duty, received permanent change of station orders outside the continental U.S.; or deployed with a military unit for 180 days or more.

To terminate the lease, the servicemember needs to give the credit union notice with a copy of the qualifying military orders and deliver physical possession of the vehicle back to the credit union (or its agent) not later than 15 days after the notice to terminate. The credit union may not impose any early termination charge, and must return any advanced payment made by the servicemember within 30 days of the effective date of the termination.

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