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SVWG Manual - Chapter 2: CONSUMER PROTECTION

CONSUMER PROTECTION

 

The Consumer Protection Subcommittee of the Servicemembers and Veterans Working Group has written this Chapter to facilitate navigation of information by Servicemembers, Veterans, and their families.  For legal practitioners or others who are seeking statutory language and additional legal content, please see the Legal Practitioners section. Additionally, please visit the websites of the federal and state agencies responsible for enforcement of each of the statutes listed below, which will provide more information and access to their complaint forms.  Links to each of those websites are also provided below.

 

 

INFORMATION FOR SERVICEMEMBERS AND THEIR FAMILIES

  1. Right to Terminate Residential Lease Contracts
    1. Servicemembers Civil Relief Act (SCRA) allows the termination of residential leases for servicemembers who (1) sign a lease but thereafter enters into active duty service; (2) receive change of station orders (3) will deploy for a period of more than ninety days or (4) sign a lease upon receipt of military orders, but receives a stop movement order in response to a local, national or global emergency effective for an indefinite period or a period of not less than thirty days. Under most leases, rent due after notice is calculated 30 days after the next rental payment is due. The servicemember must provide notice in writing along with their military orders.  § 3955(i) specifically includes within the definition of “military orders” those orders for retirement or separation, or any notification, certification or verification from the member’s commanding officer.  Rights may be waived, but the waiver must meet strict requirements of § 3913 and § 3918.  Note that 50.U.S.C. §3955(h) makes it a misdemeanor to hold the property of a servicemember, including the security deposit for the purpose of subjecting the property to a claim of rent accumulating after the lawful termination. 50 U.S.C. §3955.
      1. Under Florida Statute §83.682, a servicemember may terminate for the following additional reasons beyond those of the federal statute:  the member is prematurely/involuntarily discharged or released from active duty; the member is released from active duty and the premises is at least 35 miles from the member’s home of record; the member receives orders to move into government quarters or becomes eligible to live in government quarters, the member receives temporary orders to an area 35 or more miles from the premises and the orders are for 60 or more days; before taking possession of the property the member receives orders to an area that is 35 or more miles from the premises, the member dies during active duty (family member may terminate).   (See Appx # for chart comparing Federal vs. Florida law).  Rights cannot be waived nor are modifiable in Florida under any circumstances.  Calculation of rent under the Florida statute is more beneficial to the servicemember (30 days from the date of notice instead of 30 days after the 1st date the next rental payment is due).  Additionally, F.S. §83.64 makes it unlawful for a landlord to retaliate against a servicemember who has terminated their rental agreement.  (See Appx ## for a sample termination notice)
    2. Expedited Processing of Rental Agreements
      1. Under Florida Statute § 83.683, landlords must process a rental application made by a servicemember within 7 days and within that period must provide written notification of approval or denial.  If denied, a reason must be given.  If there is no denial within the 7-day period, the landlord must rent the unit to the servicemember provided all other terms of the application and lease are met.  These requirements also apply to condominium associations, cooperative associations and homeowners’ associations.   The rights provided in this section cannot be modified or waived.
    3. Eviction Protections/ Stay of Execution
      1. Under 50 U.S.C. §3951(c), the court may, upon a request made by the servicemember, stay eviction proceedings for a period up to ninety days or adjust the member’s obligation under the lease.  The premises must be occupied by the member or dependents, the rent amount must be below a certain amount (published annually in the Federal Register by the Department of Defense) and the member must show that their military service materially affected their ability to pay rent.  §3951(c) makes it a misdemeanor for a landlord to violate this provision.
    4. Protection Against Housing Discrimination
      1. Under Florida Statute §83.67, a landlord is prohibited from discriminating against a servicemember in offering a dwelling unit for rent or discriminate in any of the terms of the rental agreement. 

  1. Right to Terminate Contract to Purchase Real Property
    1. Under Florida Statute § 689.27, a servicemember to can terminate a contract to purchase real property prior to closing under any of the following circumstances: (1) after entering into the contract the servicemember receives change of station orders to move 35 or more miles from the location of the property; (2) after entering into the contract the servicemember is released from active duty and the property is 35 or more miles from the home of record; (3) the servicemember receives military orders to move into or becomes eligible to live in and opts to move into government quarters (4) the servicemember receives temporary duty orders, temporary change of station orders or active duty orders for a period of more than 90 days to an area 35 or more miles from the property. The notice to terminate from the servicemember must be in writing and is effective immediately.  All funds paid by the servicemember must be refunded upon termination and rights under this section cannot be waived or modified by the servicemember.
  2. Adjustment of Mortgage Obligation/Stay of Proceedings/ Enhanced Protections
    1. Under 50 U.S.C. §3953(b), in addition to the stay of foreclosure, a servicemember is entitled to an adjustment of the obligation to preserve the interests of the parties when the obligation materially affects military service and is secured by a mortgage or other type of security upon real or personal property. The adjustment may stay in effect until justice and equity require. The obligation must have originated prior to the period of active-duty service.  The Court may adjust the obligation upon its own motion within one year of a servicemember’s period of military service. Failure to comply is a misdemeanor.
    2. Under the federal Fair Housing Act, 42 U.S.C. § 3601, et seq., the U.S. Department of Justice (DOJ) can bring lawsuits where there is reason to believe that a person or entity is engaged in a "pattern or practice" of discrimination or where a denial of rights to a group of persons raises an issue of general public importance.  Included in the DOJ’s jurisdiction are violations of the seizure and security protections for real and personal property found in the SCRA.  The DOJ can obtain injunctive relief, including affirmative requirements for training and policy changes, monetary damages and, in pattern or practice cases, civil penalties.  Sample list of the DOJ’s enforcement actions and results (https://www.justice.gov/crt/recent-accomplishments-housing-and-civil-enforcement-section)
    3. In United States v. Bank of America, the United States reached a $16.65 billion settlement with Bank of America Corporation – the largest civil settlement with a single entity in American history.  Bank of America and its former and current subsidiaries, including Countrywide Financial Corporation and Merrill Lynch agreed to pay a $5 billion penalty to struggling homeowners including funds to help reduce tax liability for mortgage modification, forbearance or forgiveness.
  3. Foreclosure Protections
    1. Under 50 U.S.C. §3953(c), if you took out a mortgage loan before entering the military, your lender must get a court order before it can foreclose on your home. This protection applies while you are serving in the military and for one year after you complete your service. The Court may stay the proceedings upon its own motion and shall stay any action filed during or within one year of a servicemember’s period of military service. Any sale, seizure or foreclosure because of a breach during that time period is invalid. Failure to comply is a misdemeanor.
    2. Under Florida Statute § 250.5205, a servicemember is entitled to a stay of proceedings to enforce obligations secured by a mortgage or other type of security upon real or personal property. The obligation must have originated prior to the period of active duty service.  The court may stay the proceedings upon its own motion and shall stay the proceedings upon application by the servicemember.  Also provides that for obligations covered under this section, a sale, foreclosure or seizure is not valid if made during active duty (or 30 days thereafter) unless by court order.
  4. Loss Mitigation Options for Those Falling Behind in Mortgage Payments and Protections
    1. Regulation X, 12 C.F.R. § 1024.41 -When a borrower falls behind in their mortgage payments, they often have the right to attempt to modify their loan through a process called loss mitigation.  This process can be started by requesting an application from the servicer of the loan.  The servicer is the company that handles all the payment collection and customer concerns. Borrowers now have protections requiring the servicer to take certain steps within certain timelines to review the borrower’s financial circumstances. The servicer can offer the option of modifying the loan to make it more affordable, allowing a short sale of the home or accepting a deed in lieu of foreclosure.  The servicer can be sued if it does not offer this option at least once and does not time review a borrower’s loss mitigation application.
    2. Veterans’ Administration Servicing Purchase Program  - The Veterans’ Administration has created this program to assist borrowers with financial hardships to avoid unnecessary foreclosures. Through the program, borrowers who are in default go through the process of attempting to modify their loans to make them more affordable. Options include a repayment plan, loan modification, short sale, repurchase of your loan by the Veteran’s Administration or signing a deed in lieu. 

  1. Motor Vehicle Leases
    1. 50 U.S.C. § 3952 - Under certain circumstances, the Servicemembers Civil Relief Act (SCRA) allows active-duty servicemembers to terminate an auto lease without having to pay early termination charges or a penalty.
    2. Florida Statute § 520.14 – allows termination of vehicle lease agreements in Florida. It allows lessees, under certain circumstances terminate with a penalty. Specifically if a servicemember is called to active duty, or orders outside the United States for 60 days. The lessee must provide written notice and a copy of the military orders. No early termination fee can be imposed.
  2. Mobile Phone/Internet/Cable/Gym/Home Security Cameras
    1. 50 U.S.C. § 3956, allows termination of consumer contracts for commercial mobile service (includes cellular telephone service), internet access service, gym memberships, and home security services, at any time after the date a servicemember receives military orders to relocate or deploy for a period of 90 days or more to a location that does not support the contract.
    2. Florida Statute § 364.195 – Covers termination of telecommunication services for servicemembers. It allows a servicemember to terminate a telecommunications contract without penalty if they receive orders for relocation to an area where the service provider does not offer service, or if they are deployed for more than 60 days. To terminate, the servicemember must provide the provider with written notice and a copy of their orders.

  1. 50 U.S.C. § 3958, A servicemember with property or effects subject to a lien, including liens for storage, repair or cleaning of property, is protected from foreclosure or enforcement of the lien during the period of military service plus three months without a court order.
  2. Florida Statute § 250.5205 - Provides for a stay of proceedings to  enforce obligations secured by a mortgage or other type of security upon real or personal property. The obligation must have originated prior to the period of active duty service.  The court may stay the proceedings upon its own motion and shall stay the proceedings upon application by the servicemember.  Also provides that for obligations covered under this section, a sale, foreclosure or seizure is not valid if made during active duty (or 30 days thereafter) unless by court order. Note: one of the practical applications of this section prevents the repossession and sale of  a servicemember’s vehicle if the servicemember purchased and acquired the debt securing the vehicle prior to their active duty service.  The lender must obtain a court order and cannot avail itself to the non-judical process permitted under Florida Statute § 679.609.

  1. The Unfair Insurance Trade Practices Act, Fla. Stat. § 626.9541 - prohibits unfair methods of competition and unfair or deceptive practices in the sale of insurance including:
    • Collecting premiums not provided in a policy issued by an insurer;
      • Offering free insurance as an inducement to the purchase/sale of real or personal property;
      • Canceling an insurance contract during a policy period in order to increase the premium;
      • Issuing a nonrenewal notice of an existing contract without meeting notice requirements;
      • Misrepresentations and false advertising of insurance policies;
      • Unfair discrimination in the sale of insurance policies;
      • Unlawful rebates;
      • Unfair claim settlement practices; and
      • Misrepresentations in insurance applications.
  2. Health Insurance, Fla. Stat. § 250.341 - The act provides that any health insurance policy for any member of the Florida National Guard or a member of any branch of service who is a resident of Florida and called to active duty must i) continue all coverage for that person and their dependents and 2) reinstate the coverage without a waiting period or disqualification for any condition that existed at the time the insurance was called to active duty provided the servicemember requests the reinstatement within the statutory imposed time period.
  3. Return of Unearned Automobile Insurance Premium, Fla. Stat. § 627.7283 - If a servicemember cancels an automobile insurance policy because they are called to active duty or transferred to a location where the insurance is not required, the insurance company must refund 100 percent of any unearned premium paid.
  4. Automobile Insurance, Fla. Stat. § 627.7295 - An automobile policy may not be issued unless one month’s premium has been paid or the policy is issued to an active duty or former military personnel or their dependent. An automobile insurance policy that provides personal injury protection coverage, property damage liability coverage or both may not be issued for a term of less than six months. An insurer may not cancel a new policy during the first 60 days for nonpayment unless the payment was dishonored, rejected or invalid.

  1. Protected Class Status, Fla. Stat.  § 501.2077 - places military members, veterans and their dependents in a protected class status.  They are afforded the same heightened protections as senior citizens and persons with a disability.  Offenders may be liable for a civil penalty of up to $15,000.00 per violation if the offender knew or should have known the conduct was unfair or deceptive. Penalties are deposited into the Legal Affairs Revolving Trust Fund.
  2. Stay in Civil Proceedings, 50 U.S.C. § 3932 - In civil or administrative actions, the court may place the case on hold if the servicemember’s military obligations materially affect their ability to appear.  See “A Judge’s Guide to the Servicemembers Civil Relief Act” by Mark E. Sullivan for a full explanation of when and how a stay can be implemented.
  3. Protection from Default Judgments, 50 U.S.C. § 3931 - Before seeking a default, the filing party must file an affidavit stating whether or not the responding party is in the military. The DoD maintains a database to verify military service. If a default is entered against a military member, the member can request that the judgment be set aside under certain circumstances provided that the request is made during or within 90 days of leaving the service.
  4. Tolling of Statute of Limitations, 50 U.S.C. § 3936 - A military member’s active duty service is not counted when computing the statute of limitations in bringing a legal action.  CAVEAT: the same period is not counted when bringing an action against the servicemember.
  5. Public Records Exemption, Fla. Stat. § 119.071- allows servicemembers, reservists, veterans and their dependents to file a request that their identification and location information be exempt from public disclosure.

  1. Current Department of Education student loan and repayment information.
  2. When having trouble dealing with a student loan servicer, report a complaint to the Consumer Financial Protection Bureau.
  3. Resources and reporting on Education Issues.

  1. Credit Reporting Active-Duty Freeze: Federal law requires free security freezes and free one year active duty alerts at the three nationwide credit reporting agencies. Active-duty alerts, which protect servicemembers while they are on active duty and assigned away from their usual duty station. This alert requires businesses to take reasonable steps to verify your identity before issuing credit in your name.
  2. Debt Collection: The Fair Debt Collection Practices Act (FDCPA) states that debt collectors can't harass, abuse, or mislead you or anyone else they contact.
  3. File a complaint: If you have an issue with a credit reporting agency or a debt collector, you can file a complaint with the CFPB.

  1. Florida law limits the interest rate limit on loans in an amount less than $500,000.00 to 18% per annum, simple interest. There are many exceptions allowing higher interest rates on certain types of transactions like certain unsecured loans.  Fla. Stat. § 687.03.
  2. Consumer Finance Loans for Less than $25,000 - If a lender obtains a license from Florida regulators a company may charge a 36% interest rate on the first $10,000 borrowed, 30% for a loan between $10,000 and $20,000 and 24% for a loan between $20,000 up the the maximum loan amount of $25,000.  No security interest may be taken in a loan of less than $1,000.  Fla. Stat. § 516.031.   

  

OVERSIGHT AGENCIES AND MAKING COMPLAINTS

  1. Federal Trade Commission (FTC)
    1. Statutes covered by FTC
    2. Report Fraud
  2. Consumer Financial Protection Bureau (CFPB)
    1. Laws covered by CFPB
    2. File a Complaint
    3. Your Money, Your Goals Military Companion Guide
  3. Department of Justice (DOJ)
    1. Under the SCRA, the Attorney General is authorized to file a federal lawsuit against any person (or entity) who engages in a pattern or practice of violating this law. The Attorney General may also file such a suit where the facts at hand raise “an issue of significant public importance.” When the Attorney General files a lawsuit under the SCRA, he has the authority to seek monetary damages on behalf of individual servicemembers. The Attorney General also has the authority to seek civil penalties, equitable relief, and declaratory relief.
    2. File a Complaint
  4. VSAFE.gov – A government-wide website and call center designed to protect Veterans, service members, and their families from fraud and scams and to provide advice about what to do and how to report.  You can also call 1-833-38V-SAFE (1-833-388-7233).

  1. Florida Office of Financial Regulation
    1. The Department oversees property taxes, assesses state taxes and licenses, collects and distributes child support and provides disaster-related resources
      1. File a Complaint
  2. Florida Department of Agriculture and Consumer Services
    1. The Department’s main focus is food, animal, plant safety.  It provides resources and information relating to military scams, payday loans and other concerns also raised in MilitaryOneSource.
    2. File a Complaint
    3. Florida Office of the Attorney General
      1. The Consumer Protection Division of the Attorney General’s Office enforces Chapter 501, Part II, Florida Statutes – the Florida Deceptive and Unfair Practices Act.  The Department also created the Military and Veterans Assistance Program ("MVAP")  to educate military members and veterans on the types of scams that target their communities, what they can do to protect themselves, and how they can help protect others by reporting scams and deceptive business practices. In addition, members of the MVAP team work directly with military servicemembers and veterans who have been targeted, or their representatives, to help resolve their consumer protection related issues or find other outside assistance if necessary.
      2. File a Complaint with the MVAP by filing a complaint here or by calling 1 (866) 9NO-SCAM (1-866-966-7226).)
  3. Florida Department of Business and Professional Regulation
    1. The Department licenses and regulates real estate, homeowners’ and condominium associations, hotels and lodging and approximately 542,000 professionals ranging from architects to veterinarians, interior designers and barbers. Real estate professionals and association managers are also regulated by the Department as are hotels and lodging.
      1. File a Complaint against a licensee

 

RESOURCES

Armed Forces Legal Assistance Locator -  Provides addresses, emails and telephone numbers to all branches of military legal assistance offices throughout the Continental United States.  Search can be limited to particular state and branch of military service. 

Governor’s Initiative on Lawyer’s Assisting Warriors - Provides the possibility of pro bono representation by participating law firms for active duty military members (E-6 or below) in civil matters in the State of Florida. 

Florida Military Friendly Guide - Supplies State of Florida specific statutory protection references afforded to servicemembers and their dependents; as well as explains Florida benefits offered to military members and their families. 

Florida Veterans’ Benefits Guide -Furnishes a comprehensive guide to Veterans’ programs and benefits throughout the State of Florida. 

MilitaryOne Source - Offers a variety of services for military members and their families including free tax services, live financial counseling and links to military benefit assistance programs. 

Florida Regulated Industries Guide - Online alphabetical guide to Florida Regulated Industries which provides information on rules and regulations applicable to the particular business categories, licensing requirements and how to file a complaint. 

Your Money, Your Goals Guide by the Consumer Financial Protection Bureau.  The guide includes tools specially designed to address common financial challenges that military consumers face, such as:

  • Sample SCRA letters to lenders
  • Whether to buy or rent a house while serving in the military
  • How to leverage special savings opportunities exclusive to military families
  • How the military relief societies can help when you’re in need
  • How to financially plan for a Permanent Change of Station
  • How to spot military affinity marketing and scams

VSAFE.gov – A government-wide website and call center designed to protect Veterans, service members, and their families from fraud and scams and to provide advice about what to do and how to report.  You can also call 1-833-38V-SAFE (1-833-388-7233).

 

LEGAL PRACTITIONERS

  1. The SCRA is a law created to provide extra protections for servicemembers in the event that legal or financial transactions adversely affect their rights during military or uniformed service. Some popular protections include:
    1. Reducing the interest rate on any pre-service loans to a maximum of 6 percent
    2. Protections against default judgments in civil cases
    3. Protections against foreclosure on their home
    4. Protections against repossession of their property
    5. Termination of residential housing, telecom, automobile leases without penalty
    6. Transferability of Professional License
  2. Title 50 U.S. Code, Sections 3901-4043
  3. Additional information on the SCRA

  1. The MLA is a Federal law that provides special financial protections for active duty servicemembers, spouses, and certain dependents.
    1. A 36% interest cap. You can’t be charged more than a 36% Military Annual Percentage Rate (MAPR), which includes fees, finance charges, add on products in connection with the credit.
    2. No mandatory waivers of certain legal rights. A creditor can’t require you to submit to mandatory arbitration or give up certain rights you have under State or Federal laws like the Servicemembers Civil Relief Act.
    3. No mandatory allotments. A creditor can’t require you to create a voluntary military allotment in order to get the loan.
    4. No prepayment penalty. A creditor can’t charge a penalty if you pay back part – or all – of the loan early.
  2. 10 U.S.C. § 987
  3. Additional information on the MLA

 

 

SVWG Manual - Table of Contents

Updated April 22, 2025