Posted February 24th, 2025 by Peter Lukevich, JD
In this edition of “On the Hook” we will take a look some frequently asked questions about the Servicemembers Civil Relief Act (SCRA). Towing operators across the U.S. want to know the Who, What, Where, and When about the SCRA. At Service Member Data (SMD) we will do our best to provide you with up to date and reliable answers to some of the common inquiries we receive from customers/partners/towers.
First the “WHO”. The SCRA, formerly known as the Soldier’s and Sailors’ Civil Relief Act of 1940, applies to all military members that are serving on active duty. In addition, the SCRA also provides protections for reservists and national guard service members that are ordered to active duty. In some cases, the law also extends benefits to the spouses and dependents subject to the obligations of servicemembers. The law is broadly applied for the benefit of the servicemember and is applicable regardless of where the servicemember is serving on active duty. In other words, it doesn’t matter if the military member is serving in the U.S. and its territories, or overseas, or in or not in a war zone.
Turning to the “WHAT” we need to review the law itself for guidance. In regard to towing operators, the applicable section in the SCRA is titled Foreclosure, Eviction from Bank-Owned Property. It can be confusing that this portion of the law doesn’t mention towing or tow operators. However, the law references personal property owned by a servicemember. The SCRA prevents, “during any period of military service of the servicemember and for 90 days thereafter”…enforcement of “any lien on the “property or the personal effects” of the active duty member of the military without an order from a court before enforcement. This requirement can be challenging if not impossible without sufficient information for the last registered owner.
We have worked with towers that ask us “WHERE” this law is applied. The SCRA applies anywhere an active-duty member of the military is serving. This means that if you have a lien for towing and storage on a vehicle you impounded pursuant to the laws of your state, the SCRA applies to you and your compliance is mandatory.
For example, you might have auction sale requirements in your state that seem to permit you to sell a vehicle at “sale” or “auction” and you are assured by your state towing director that all you need to do to conduct a valid and legal auction is comply with state law. That assurance you receive may not hold up in court as a defense when the Department of Justice files a lawsuit against you for violation of the SCRA. The SCRA is federal and that takes precedent over your state law or regulation.
Finally, we can review “WHEN” the SCRA applies to an active-duty member. The law tells us that an active-duty member is covered while in the service and that members of the reserves and the national guard are protected upon their entry onto active duty. Reservists and national guardsmen are not protected by the SCRA when they are attending “drill on the weekend” and for “two-weeks during the summer”. Additionally, the SCRA also provided benefits in some cases for 90 days after release from active duty and that amount of time can be extended depending on state law.
For example, if you impounded a vehicle that is owned by an active-duty service member on January 1, 2025 and you discovered that the RO was released/discharged from active-duty on February 1, 2025 you would still have to wait for 90 days to pass before you could sell the vehicle at auction if the RO did not claim the vehicle before that date. Confusing? I hope not. If you have a question, reach out to SMD and we can work with you to find a practicing attorney in your state.
Next time in the “On the Hook” blog, we plan to examine more closely working within the requirements of the SCRA to shorten your time holding a vehicle prior to sale or auction and review tools like waivers that have helped towers like you stay protected and comply with the SCRA.
As always, Service Member Data is here to assist you in complying with the SCRA. Click on the contact tab to get in touch with us today.
Please stay safe.
Peter Lukevich
Peter Lukevich is an attorney who serves as the President and CEO of Service Member Data LLC located in Seattle, WA. Peter has also served as the Association of the Towing and Recovery Association of Washington and as an advocate for the towing industry in the legislature of Washington State. He is recognized as an expert authority on the Servicemembers Civil Relief Act (SCRA). He has experience representing towers in SCRA litigation commenced by the attorney general in his home state and has provided consultation and guidance to towers across the US on the SCRA. Service Member Data LLC provides active-duty military status determination of registered owners of vehicles that are sold to satisfy the lien or fees owed to a tower for towing and storage of an impounded vehicle.
NOTE: The contents of this blog post are not offered as legal advice or the advice and assistance of an attorney. The findings and analysis are prepared to be consistent with federal law. Each tower should consult with independent legal counsel to determine what, if any, laws apply in the jurisdiction in which the tower operates and conducts his/her business.