ARLINGTON, Va.—Does the activation of a National Guard member trigger Servicemembers Civil Relief Act (SCRA) protections?
It might, according to NAFCU Regulatory Compliance Counsel David Park, who noted the “term military service as it is used in the SCRA only covers National Guard members in very limited circumstances—when they are called to active service by the President or Secretary of Defense under 32 § USC 502(f) for a period of 30 or more consecutive days."
Park warned that understanding the differences can help credit unions avoid costly compliance issues, like the Department of Justice's recent $3 million settlement with Nissan Motor Acceptance Corporation for alleged SCRA violations.
"While the SCRA may not protect National Guard members in other situations, for example, when the National Guard is called to service by a state governor, state's may have their own version of an SCRA-type law or provide other protections to National Guard members," said Park. "Your credit union may wish to consult with local counsel for an assessment of whether there are any relevant state laws that might affect your credit union's obligations toward these types of National Guard members who may not be covered by the SCRA."