Page 50 - CARS Standard Program

2) Fred Smith enlists in the U.S. Army. Two months after being sworn into active duty Fred decides to purchase a new car. Neither Fred nor his wife or other dependents is covered by the Act for this purchase.
Simply stated, if the purchase is PRIOR to being sworn in to active duty or reporting for military reserve active duty, the Act will apply. If the collateral is purchased AFTER being sworn in to active duty, the Act will not apply.
Should a default on a loan occur on a military service member, it is best addressed by the creditor’s legal staff. A Wrongful Repossession under the SCRA is a crime with a possible punishment of up to one year in jail.
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