Debt collection agencies are notorious for obtaining default judgments against consumers. A debt collector might serve the consumer with papers notifying him or her that they’re being sued, but some debt collection agencies engage in what is called “gutter service,” whereby consumers are never provided with notice. The debt collector then appears in court and the consumer doesn’t. Consumers don’t have a chance to dispute the debt or to tell their side of the story to the judge. Judges don’t really have a choice, and give the debt collector what he wants – a judgment against the consumer. With a judgment in hand, the debt collector can then go about garnishing wages and freezing bank accounts. It’s nasty business.
The Servicemembers Civil Relief Act protects those on active duty from default judgments in civil actions. In fact, the person who files the suit has to provide an affidavit to the court stating whether or not the person is serving in the military. If a debt collector makes a false affidavit, he can be fined, imprisoned, or both. The SCRA says that the court can’t enter a judgment until after it appoints an attorney to represent the defendant (if the defendant doesn’t already have an attorney). Even then, the court must delay proceedings for a minimum of 90 days if a solid defense requires the servicemember’s presence or if the appointed attorney can’t contact the servicemember.
If a default judgment was issued during active military service or within 60 days after release from active duty service, the servicemember can ask the court to throw out the judgment and present his or her defense. However, in order to take advantage of this provision, the servicemember must file an application with the court no later than 90 days after being released from active duty. In addition, three criteria must have been met: 1) the servicemember cannot have made a court appearance in the case; 2) military service affected his or her ability to mount a defense; and 3) the servicemember must have a valid legal defense.
If you’ve had your property repossessed, have been unable to get your interest rates lowered to 6%, have been hounded by debt collectors, or have had a default judgment entered against you while on active duty in the military, complete the form to the right for a FREE evaluation, or call toll-free 855-301-8100. The legal team at Lemberg & Associates is committed to fighting for your rights under the Servicemembers Civil Relief Act and under other applicable laws.
