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Does the activation of a National Guard member trigger SCRA protections?
NAFCU's David Park answers whether the activation of a member of the National Guard triggers certain protections under the Servicemembers Civil Relief Act (SCRA) by explaining the differences between a member being activated under Titles 10 and 32 of the United States Code in a new post on the Compliance Blog.
Park notes "that 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."
He warns 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," writes 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."
For more on National Guard protections, read Park's blog; NAFCU also has resources on defense credit union issues available. Those interested can sign up to receive new blog posts in their inbox every Monday, Wednesday and Friday.