Servicemembers Civil Relief Act

BuckleySandler is on the forefront of firms handling Servicemember Civil Relief Act (SCRA) compliance, investigations, enforcement actions and litigation on behalf of banks, mortgage lenders and servicers and other consumer financial services companies.

In 2011, BuckleySandler served as chief SCRA counsel to two major mortgage servicers in what is still the largest DOJ SCRA settlement ever in terms of both number of servicemembers and dollar value. Since then, BuckleySandler has served as SCRA counsel to two major servicers that are also under consent orders, to a major bank in connection with settlement of SCRA-related allegations by federal agencies, and to several other clients in various capacities. 

Our SCRA capabilities and services include:

  • Representing clients in investigations and enforcement actions before federal and state agencies;
  • Representing clients in SCRA-related litigation matters and other consumer complaints;
  • Creating and enhancing SCRA compliance programs, policies and procedures, and training programs;
  • Testing compliance with existing SCRA policies and procedures;
  • Advising clients regarding various SCRA requirements, including the requirements related to foreclosure, default judgment, eviction, interest rate, installment contract, storage liens, and life insurance;
  • Reviewing foreclosure files, origination files, and servicing notes for SCRA compliance; and
  • Requesting information from the Department of Defense to further research the validity of SCRA complaints.

Through a comprehensive and systematic approach to addressing individual SCRA complaints, we have been successful in reducing what at the outset appeared to be thousands of potential SCRA errors to single digits of violations for our clients.

The SCRA provides substantial business and reputational risks to banks, mortgage lenders and servicers, auto finance companies, credit card issuers and other consumer finance companies. Not only are the financial penalties steep – recent settlements show a single SCRA foreclosure violation can cost over $125,000, plus the cost of the foreclosed home – but federal regulators and the Department of Justice are actively looking for opportunities to initiate SCRA enforcement actions. Having experienced counsel who has intimate familiarity with the SCRA and the regulators who enforce it is indispensable when facing potential legal actions or simply instituting proactive compliance measures.

Related Professionals

Name Title Phone Office
Jensen, Kirk D. Partner 202.349.8048 Washington, DC
Langlois, Jon David D. Partner 202.349.8045 Washington, DC
McGinn, Elizabeth E. Partner 212.600.2370 New York, NY
Naimon, Jeffrey P. Partner 202.349.8030 Washington, DC
Dempsey, Alex Associate 202.349.8085 Washington, DC
Garakani, Anoush Associate 202.461.2926 Washington, DC
Kotin, H Joshua Associate 312.924.9855 Chicago, IL
Leonhardt, Sasha Associate 202.349.7971 Washington, DC
Lutch, Alexander D. Associate 202.349.7947 Washington, DC

Significant Representations

  • SCRA Advice
    Advised numerous student lenders on developing and implementing policies and procedures addressing SCRA risks at the federal level and related state laws.
  • SCRA Compliance Programs
    Assisted clients in creating and enhancing SCRA compliance programs that have been approved by various federal agencies.
  • SCRA Training Programs
    Assisted clients in creating and enhancing SCRA training programs that been approved by various federal agencies.
  • In re SCRA Settlement
    The Department of Justice alleged that two major national lenders failed to comply with SCRA lending requirements and guidelines, including confirming independently whether borrowers were on active du... MORE
  • SCRA Compliance
    Advised numerous mortgage lenders, mortgage servicers, auto lenders, credit card issuers, and other financial institutions regarding compliance with the federal SCRA and related state laws.