Posted March 14th, 2025 by Peter Lukevich, JD
As promised, in this edition of “On the Hook” from Service Member Data LLC (SMD), we are going to take a look at the requirements on how long to hold a vehicle in storage yard before disposing of the vehicle at auction or sale and review requirements for using a Servicemembers Civil Relief Act (SCRA) waiver. This tool has helped tow operators across the nation work within the legal requirements of the SCRA while maintaining their business operations.
If you impound vehicles and sell them at auction or a lien sale to recoup some or all of your towing and storage fees, you must comply with the SCRA. Federal law protects servicemembers for the duration of their active duty and extends protection for 90 days after discharge. Please note, in this post SMD is only referencing federal law. It is also imperative to review the requirements for the state in which you are doing business. For example, in the State of Washington, the required waiting time after discharge or release is 180 days! Check with your attorney for exact guidance on this issue.
As you know, holding a vehicle for long periods of time can cause problems for your business. For example, you might run out of room in your storage yard for additional impounds or other vehicles and if you hold vehicle for longer periods of time, you may have to constant move them to allow for access to personal property. Not to mention, you will have to monitor paperwork and make repetitive efforts trying to contact the registered owner and lien holder. Using a SCRA waiver might provide a legal, quick, and reasonable alternative.
The SCRA allows for a waiver of rights in some circumstances. The servicemember may waive any of their rights and protections under the act. The waiver must be signed by both parties during or after the servicemember’s period of military service. The waiver must include reference the financial obligation to which the SCRA waiver applies. You can meet this requirement by identifying the name of the registered owner, the make and model of the vehicle, VIN, and the date of the original impound. Oh, one unique requirement is that the written waiver must be prepared with at least 12-point font!
To use a SCRA waiver for your business requires that you’re able to identify the registered owner and make contact with registered owner to arrange to get a waiver signed. This effort is challenging. Service Member Data is here to assist you with locating the registered owner/active-duty member and getting a SCRA waivers signed by registered owners there are or were on active duty. We can adjust the waiver to comply with state law if needed after you consult with local legal counsel.
Next time in the “On the Hook” blog we will share how Service Member Data can help you train your employees on how to comply with the SCRA. We will look at online training options and focused training that is compliant with the federal law and the laws of the state(s) where you do business. Service Member Data LLC is hear to assist tow operators across the US meet the requirement of the SCRA.
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 served as the Association Director of the Towing and Recovery Association of Washington. Currently, he is 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.