Specific Auto Problems

Military Personnel, Credit Cards and Civil Actions

Posted by Howard Gutman | May 01, 2024 | 0 Comments

1. Interest Rate Charges and Federal Statute 

The Servicemembers Civil Relief Act (SCRA) provides numerous protections for servicemembers in areas such as court proceedings, interest rates, mortgages, auto loans, and housing leases, including giving servicemembers the right to have their interest rate on any pre-service debts capped at six percent during active-duty military service. So that servicemembers can vindicate their rights under the SCRA, the statute provides that any person who has suffered a violation “may in a civil action . . . be a representative party on behalf of members of a class or be a member of a class, in accordance with the Federal Rules of Civil Procedure, notwithstanding any previous agreement to the contrary.” 50 U.S.C. § 4042(a)(3).

2. Problems for Military Families 

"The Consumer Financial Protection Bureau (CFPB) released its annual report on the top financial concerns facing military families. The report highlights the growth of digital payment app usage in the servicemember community, the unique risks to servicemembers from these services, and the potential abuse from bad actors. Some servicemembers have also indicated in their complaints about incurring serious financial harm from scams and fraud when using these services, and their complaints suggest digital payment app providers often fail to provide timely and substantive resolutions.

Servicemembers, veterans, and their families have submitted more than 323,000 consumer complaints since the CFPB opened its doors in 2011. In 2022, they submitted nearly 66,400 complaints to the CFPB, a 55% increase from 2021. In 2022, they submitted more than 1,100 complaints on digital payment apps, one of the fastest-growing complaint types submitted to the CFPB. Many of the reported issues and complaints about digital payment apps relate to frauds and scams, suggesting it is a rapidly growing financial threat to military families.

In building on that earlier research, today's report summarizes in-depth complaint data analysis from active duty servicemembers, veterans, and their families. Today's report focuses on the growth of digital payment apps in the servicemember community, and identified several risks to military families, including:

  • Serious financial harm from fraud and scams when using digital payment apps. Often during a permanent change of duty station, servicemembers face the need to secure housing, a new automobile, or daycare during a short window, which often requires them to conduct more online transactions using digital payment apps. After reporting being scammed online using payment apps, servicemembers reported that it affected their overall financial stability, and such consequences may impact servicemembers' ability to continue service or keep a security clearance.
  • Identity theft and unauthorized account access. Servicemembers' steady income may make them a target for identity thieves looking to tap into bank accounts that are often linked to a digital payment app. The CFPB has received complaints where servicemembers had their identities stolen followed by unauthorized money transfers out of their digital payment app accounts.
  • Failure of digital payment app providers to provide timely and substantive resolutions to servicemember complaints. Complaints indicate servicemembers and veterans who lost money due to unauthorized transfers and are still struggling to get their money back due to digital payment app providers failing to provide timely and substantive resolutions."


Our office represents service people with claim.

Call (973) 598-1980 for a Free consultation on Violations of the Service Members Civil Relief Act 

About the Author

Howard Gutman

Hiring an attorney can be a stressful and confusing situation.  You want an expert, honest, personal approach to your case.  The Law Office of Howard Gutman has been fighting for consumer rights and representing commercial interests for over 20 years.  We have a deep knowledge of fraud, consumer,...


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