Servicemembers Home Protection Act of 2005 - Amends the Servicemembers Civil Relief Act (affording certain financial rights and protections to servicemembers and their families while the servicemembers are serving in the Armed Forces) to make any person or entity who fails to comply with any requirement of such Act liable to such servicemember or dependent for actual, punitive, consequential, and other damages caused by such noncompliance. Provides for administrative enforcement of such Act through the Federal Trade Commission (FTC) or other regulatory agencies, and allows a private cause of action by the aggrieved servicemember or dependent.
Directs the Secretary of the military department concerned to provide to each member under their jurisdiction pertinent information on the rights and protections available to servicemembers and their dependents under such Act. Authorizes the Secretary concerned to provide such information to affected adult dependents.
Amends the Housing and Urban Development Act of 1968 to require the Department of Housing and Urban Development (HUD) to provide a servicemember homeowner with an explanation of servicemember and dependent mortgage and foreclosure rights under such Act.
[Congressional Bills 109th Congress]
[From the U.S. Government Publishing Office]
[S. 1814 Introduced in Senate (IS)]
109th CONGRESS
1st Session
S. 1814
To amend the Servicemembers Civil Relief Act and the Housing and Urban
Development Act of 1968 to enhance protections for servicemembers and
their dependents, and for other purposes.
_______________________________________________________________________
IN THE SENATE OF THE UNITED STATES
October 3, 2005
Mr. Bayh introduced the following bill; which was read twice and
referred to the Committee on Veterans' Affairs
_______________________________________________________________________
A BILL
To amend the Servicemembers Civil Relief Act and the Housing and Urban
Development Act of 1968 to enhance protections for servicemembers and
their dependents, and for other purposes.
Be it enacted by the Senate and House of Representatives of the
United States of America in Congress assembled,
SECTION 1. SHORT TITLE.
This Act may be cited as the ``Servicemembers Home Protection Act
of 2005''.
SEC. 2. FINDINGS.
Congress makes the following findings:
(1) Servicemembers and their families face overwhelming
challenges in their daily lives when servicemembers are called
to active duty, including financial hardship that can push
servicemember families to the brink of foreclosure or eviction.
(2) Congress long ago recognized the special burden that
servicemembers encounter when their deployment impedes their
ability to meet previously incurred financial obligations and,
in enacting the Servicemembers Civil Relief Act in 2003,
restated and improved protections for servicemembers in the
predecessor to that Act, the Soldier' and Sailors' Civil Relief
Act of 1940.
(3) The protections of the Servicemembers Civil Relief Act
are not uniformly applied because some lenders, debt
collectors, landlords, lawyers, and judges are either
unfamiliar with the Act or ignore it.
(4) The Department of Defense does not adequately educate
servicemembers or their families regarding their rights under
the Servicemembers Civil Relief Act.
(5) A lack of adequate information about the Servicemembers
Civil Relief Act means that servicemembers serving abroad are
distracted from their duties out of concern for the foreclosure
of their family homes, the eviction of their families from
their dwellings, or the repossession of their families
vehicles.
SEC. 3. CIVIL LIABILITY FOR NONCOMPLIANCE AND ENFORCEMENT OF
SERVICEMEMBERS CIVIL RELIEF ACT.
(a) General Civil Liability and Enforcement.--
(1) In general.--The Servicemembers Civil Relief Act (50
U.S.C. App. 501 et seq.) is amended by adding at the end the
following new title:
``TITLE VIII--CIVIL LIABILITY FOR NONCOMPLIANCE AND ENFORCEMENT
``SEC. 801. CIVIL LIABILITY FOR NONCOMPLIANCE.
``(a) In General.--Any person or entity (other than a servicemember
or dependent) who fails to comply with any requirement imposed by this
Act with respect to a servicemember or dependent is liable to such
servicemember or dependent in an amount equal to the sum of--
``(1) any actual damages sustained by such servicemember or
dependent as a result of the failure;
``(2) such amount of punitive damages as the court may
allow;
``(3) such amount of consequential damages as the court may
allow;
``(4) such additional damages as the court may allow, in an
amount not less than $100 or more than $5,000 (as determined
appropriate by the court), for each violation; and
``(5) in the case of any successful action to enforce
liability under this section, the cost of the action together
with reasonable attorneys fees as determined by the court.
``(b) Attorney Fees.--On a finding by the court that an
unsuccessful pleading, motion, or other paper filed in connection with
an action under this section was filed in bad faith or for the purposes
of harassment, the court shall award to the prevailing party attorney
fees in amount that is reasonable in relation to the work expended in
responding to such pleading, motion, or other paper.
``SEC. 802. ADMINISTRATIVE ENFORCEMENT.
``(a) Enforcement by Federal Trade Commission.--(1) Except as
provided in subsections (b), (c), and (d), compliance with the
provisions of this Act shall be enforced by the Federal Trade
Commission in accordance with the Federal Trade Commission Act with
respect to entities and persons subject to the Federal Trade Commission
Act.
``(2) For the purpose of the exercise by the Commission under this
subsection of its functions and powers under the Federal Trade
Commission Act, a violation of any requirement or prohibition imposed
by this Act shall constitute an unfair or deceptive act or practice in
commerce in violation of section 5(a) of the Federal Trade Commission
Act, and shall be subject to enforcement by the Commission with respect
to any entity or person subject to enforcement by the Commission
pursuant to this subsection, irrespective of whether such person or
entity is engaged in commerce or meets any other jurisdictional tests
under the Federal Trade Commission Act.
``(3) The Commission shall have such procedural, investigative, and
enforcement powers, including the power to issue procedural rules in
enforcing compliance with the requirements imposed by this Act and to
require the filing of reports, the production of documents, and the
appearance of witnesses, as though the applicable terms and conditions
of the Federal Trade Commission Act were part of this Act.
``(4) Any person or entity violating any provision of this Act
shall be subject to the penalties, and entitled to the privileges and
immunities, provided in the Federal Trade Commission Act as though the
applicable terms and provisions of the Federal Trade Commission Act
were part of this Act.
``(5)(A) The Commission may commence a civil action to recover a
civil penalty in a district court of the United States against any
person or entity that has engaged in such violation. In such action,
such person or entity shall be liable, in addition to any amounts
otherwise recoverable, for a civil penalty in the amount of $5,000 to
$50,000, as determined appropriate by the court for each violation.
``(B) In determining the amount of a civil penalty under
subparagraph (A), the court shall take into account the degree of
culpability, any history of prior such conduct, ability to pay, effect
on ability to continue to do business, and such other matters as
justice may require.
``(b) Enforcement by Other Regulatory Agencies.--Compliance with
the requirements imposed by this Act with respect to financial
institutions shall be enforced under--
``(1) section 8 of the Federal Deposit Insurance Act, in
the case of--
``(A) national banks, and Federal branches and
Federal agencies of foreign banks, and any subsidiaries
of such (except brokers, dealers, persons providing
insurance, investment companies, and investment
advisers) by the Office of the Comptroller of the
Currency;
``(B) member banks of the Federal Reserve System
(other than national banks), branches and agencies of
foreign banks (other than Federal branches, Federal
agencies, and insured State branches of foreign banks),
commercial lending companies owned or controlled by
foreign banks, and organization operating under section
25 or 25A of the Federal Reserve Act, and bank holding
companies and their nonbank subsidiaries or affiliates
(except brokers, dealers, persons providing insurance,
investment companies, and investment advisers) by the
Board of Governors of the Federal Reserve System; and
``(C) banks insured by the Federal Deposit
Insurance Corporation (other than members of the
Federal Reserve System) and insured State branches of
foreign banks, and any subsidiaries of such entities
(except brokers, dealers, persons providing insurance,
investment companies, and investment advisers) by the
Board of Directors of the Federal Deposit Insurance
Corporation;
``(2) section 8 of the Federal Deposit Insurance Act, by
the Director of the Office of Thrift Supervision, in the case
of a savings association the deposits of which are insured by
the Federal Deposit Insurance Corporation and any subsidiaries
of such saving associations (except brokers, dealers, persons
providing insurance, investment companies, and investment
advisers);
``(3) the Federal Credit Union Act, by the Administrator of
the National Credit Union Administration with respect to any
federally insured credit union, and any subsidiaries of such an
entity;
``(4) State insurance law, by the applicable State
insurance authority of the State in which a person is
domiciled, in the case of a person providing insurance; and
``(5) the Federal Trade Commission Act, by the Federal
Trade Commission for any other financial institution or other
person that is not subject to the jurisdiction of any agency or
authority under paragraphs (1) through (4).
``(c) Private Cause of Action.--A servicemember, dependent, or
other person protected by a provision of this Act may commence an
action in a district court of the United States, or in a State court of
competent jurisdiction, to seek enforcement of the protection afforded
by such provision and the imposition of civil liability as specified
such provision or section 801.
``(d) Construction of Enforcement.--
``(1) Enforcement by ftc.--The enforcement of the
provisions of this Act by the Federal Trade Commission pursuant
to subsection (a) shall be in addition to any other enforcement
of such provisions by the Department of Justice, private cause
of action, or other mechanism afforded by State law.
``(2) Construction of remedies.--The remedies for
violations of the provisions of this Act provided for under
subsections (a), (b), and (c) are in addition to any other
remedies for violations of such provisions under Federal or
State law.''.
(2) Clerical amendment.--The table of contents in the first
section of that Act is amended by adding at the end the
following new items:
``TITLE VIII--CIVIL LIABILITY FOR NONCOMPLIANCE AND ENFORCEMENT
``Sec. 801. Civil liability for noncompliance.
``Sec. 802. Administrative enforcement.''.
(b) Liability for Noncompliance.--
(1) Section 301(c) of the Servicemembers Civil Relief Act
(50 U.S.C. App. 531(c)) is amended by striking paragraph (2)
and inserting the following new paragraphs:
``(2) Civil liability for noncompliance.--Any person or
entity (other than a servicemember or dependent) who fails to
comply with any requirement imposed by this section with
respect to a servicemember or dependent is liable to such
servicemember or dependent in an amount equal to the sum of--
``(A) any actual damages sustained by such
servicemember or dependent as a result of the failure;
``(B) such amount of punitive damages as the court
may allow;
``(C) such amount of consequential damages as the
court may allow;
``(D) such additional damages as the court may
allow, in an amount not less than $100 or more than
$5,000 (as determined appropriate by the court), for
each violation; and
``(E) in the case of any successful action to
enforce liability under this section, the cost of the
action together with reasonable attorneys fees as
determined by the court.
``(3) Attorney fees.--On a finding by the court that an
unsuccessful pleading, motion, or other paper filed in
connection with an action under this section was filed in bad
faith or for the purposes of harassment, the court shall award
to the prevailing party attorney fees in amount that is
reasonable in relation to the work expended in responding to
such pleading, motion, or other paper.''.
(2) Section 302(b) of that Act (50 U.S.C. App. 532(b)) is
amended by striking paragraph (2) and inserting the following
new paragraphs:
``(2) Civil liability for noncompliance.--Any person or
entity (other than a servicemember or dependent) who fails to
comply with any requirement imposed by this section with
respect to a servicemember or dependent is liable to such
servicemember or dependent in an amount equal to the sum of--
``(A) any actual damages sustained by such
servicemember or dependent as a result of the failure;
``(B) such amount of punitive damages as the court
may allow;
``(C) such amount of consequential damages as the
court may allow;
``(D) such additional damages as the court may
allow, in an amount not less than $100 or more than
$5,000 (as determined appropriate by the court), for
each violation; and
``(E) in the case of any successful action to
enforce liability under this section, the cost of the
action together with reasonable attorneys fees as
determined by the court.
``(3) Attorney fees.--On a finding by the court that an
unsuccessful pleading, motion, or other paper filed in
connection with an action under this section was filed in bad
faith or for the purposes of harassment, the court shall award
to the prevailing party attorney fees in amount that is
reasonable in relation to the work expended in responding to
such pleading, motion, or other paper.''.
(3) Section 303(d) of that Act (50 U.S.C. App. 533(d)) is
amended by striking paragraph (2) and inserting the following
new paragraphs:
``(2) Civil liability for noncompliance.--Any person or
entity (other than a servicemember or dependent) who fails to
comply with any requirement imposed by this section with
respect to a servicemember or dependent is liable to such
servicemember or dependent in an amount equal to the sum of--
``(A) any actual damages sustained by such
servicemember or dependent as a result of the failure;
``(B) such amount of punitive damages as the court
may allow;
``(C) such amount of consequential damages as the
court may allow;
``(D) such additional damages as the court may
allow, in an amount not less than $100 or more than
$5,000 (as determined appropriate by the court), for
each violation; and
``(E) in the case of any successful action to
enforce liability under this section, the cost of the
action together with reasonable attorneys fees as
determined by the court.
``(3) Attorney fees.--On a finding by the court that an
unsuccessful pleading, motion, or other paper filed in
connection with an action under this section was filed in bad
faith or for the purposes of harassment, the court shall award
to the prevailing party attorney fees in amount that is
reasonable in relation to the work expended in responding to
such pleading, motion, or other paper.''.
(4) Section 305(h) of that Act (50 U.S.C. App. 535(h)) is
amended by striking paragraph (2) and inserting the following
new paragraphs:
``(2) Civil liability for noncompliance.--Any person or
entity (other than a servicemember or dependent) who fails to
comply with any requirement imposed by this section with
respect to a servicemember or dependent is liable to such
servicemember or dependent in an amount equal to the sum of--
``(A) any actual damages sustained by such
servicemember or dependent as a result of the failure;
``(B) such amount of punitive damages as the court
may allow;
``(C) such amount of consequential damages as the
court may allow;
``(D) such additional damages as the court may
allow, in an amount not less than $100 or more than
$5,000 (as determined appropriate by the court), for
each violation; and
``(E) in the case of any successful action to
enforce liability under this section, the cost of the
action together with reasonable attorneys fees as
determined by the court.
``(3) Attorney fees.--On a finding by the court that an
unsuccessful pleading, motion, or other paper filed in
connection with an action under this section was filed in bad
faith or for the purposes of harassment, the court shall award
to the prevailing party attorney fees in amount that is
reasonable in relation to the work expended in responding to
such pleading, motion, or other paper.''.
(5) Section 306(e) of that Act (50 U.S.C. App. 536(e)) is
amended by striking paragraph (2) and inserting the following
new paragraphs:
``(2) Civil liability for noncompliance.--Any person or
entity (other than a servicemember or dependent) who fails to
comply with any requirement imposed by this section with
respect to a servicemember or dependent is liable to such
servicemember or dependent in an amount equal to the sum of--
``(A) any actual damages sustained by such
servicemember or dependent as a result of the failure;
``(B) such amount of punitive damages as the court
may allow;
``(C) such amount of consequential damages as the
court may allow;
``(D) such additional damages as the court may
allow, in an amount not less than $100 or more than
$5,000 (as determined appropriate by the court), for
each violation; and
``(E) in the case of any successful action to
enforce liability under this section, the cost of the
action together with reasonable attorneys fees as
determined by the court.
``(3) Attorney fees.--On a finding by the court that an
unsuccessful pleading, motion, or other paper filed in
connection with an action under this section was filed in bad
faith or for the purposes of harassment, the court shall award
to the prevailing party attorney fees in amount that is
reasonable in relation to the work expended in responding to
such pleading, motion, or other paper.''.
(6) Section 307(c) of that Act (50 U.S.C. App. 537(c)) is
amended by striking paragraph (2) and inserting the following
new paragraphs:
``(2) Civil liability for noncompliance.--Any person or
entity (other than a servicemember or dependent) who fails to
comply with any requirement imposed by this section with
respect to a servicemember or dependent is liable to such
servicemember or dependent in an amount equal to the sum of--
``(A) any actual damages sustained by such
servicemember or dependent as a result of the failure;
``(B) such amount of punitive damages as the court
may allow;
``(C) such amount of consequential damages as the
court may allow;
``(D) such additional damages as the court may
allow, in an amount not less than $100 or more than
$5,000 (as determined appropriate by the court), for
each violation; and
``(E) in the case of any successful action to
enforce liability under this section, the cost of the
action together with reasonable attorneys fees as
determined by the court.
``(3) Attorney fees.--On a finding by the court that an
unsuccessful pleading, motion, or other paper filed in
connection with an action under this section was filed in bad
faith or for the purposes of harassment, the court shall award
to the prevailing party attorney fees in amount that is
reasonable in relation to the work expended in responding to
such pleading, motion, or other paper.''.
SEC. 4. OUTREACH TO MEMBERS OF THE ARMED FORCES AND THEIR DEPENDENTS ON
THE SERVICEMEMBERS CIVIL RELIEF ACT.
(a) Outreach to Members of the Armed Forces.--
(1) In general.--The Secretary concerned shall provide to
each member of the Armed Forces under the jurisdiction of the
Secretary pertinent information on the rights and protections
available to servicemembers and their dependents under the
Servicemembers Civil Relief Act (50 U.S.C. App. 501 et seq.).
(2) Time of provision.--Information shall be provided to a
member of the Armed Forces under paragraph (1) at times as
follows:
(A) During initial entry training.
(B) In the case of a member of a reserve component
of the Armed Forces, during initial entry training and
when the member is mobilized or otherwise individually
called or ordered to active duty for a period of more
than one year.
(C) At such other times as the Secretary concerned
considers appropriate.
(b) Outreach to Dependents.--The Secretary concerned may provide to
the adult dependents of members of the Armed Forces under the
jurisdiction of the Secretary pertinent information on the rights and
protections available to servicemembers and their dependents under the
Servicemembers Civil Relief Act.
(c) Definitions.--In this section, the terms ``dependent'' and
``Secretary concerned'' have the meanings given such terms in section
101 of the Servicemembers Civil Relief Act (50 U.S.C. App. 511).
SEC. 5. SERVICEMEMBERS RIGHTS UNDER THE HOUSING AND URBAN DEVELOPMENT
ACT OF 1968.
(a) In General.--Section 106(c)(5)(A)(ii) of the Housing and Urban
Development Act of 1968 (12 U.S.C. 1701x(c)(5)(A)(ii)) is amended--
(1) in subclause (II), by striking ``; and'' and inserting
a semicolon;
(2) in subclause (III), by striking the period and
inserting ``; and''; and
(3) by adding at the end the following:
``(IV) notify the homeowner by a
statement or notice, written in plain
English by the Secretary of Housing and
Urban Development, in consultation with
the Secretary of Defense and the
Secretary of the Treasury, explaining
the mortgage and foreclosure rights of
servicemembers, and the dependents of
such servicemembers, under the
Servicemembers Civil Relief Act (50
U.S.C. App. 501 et seq.), including the
toll-free military one source number to
call if servicemembers, or the
dependents of such servicemembers,
require further assistance.''.
(b) No Effect on Other Laws.--Nothing in this section shall relieve
any person of any obligation imposed by any other Federal, State, or
local law.
(c) Disclosure Form.--Not later than 150 days after the date of
enactment of this Act, the Secretary of Housing and Urban Development
shall issue a final disclosure form to fulfill the requirement of
section 106(c)(5)(A)(ii)(IV) of the Housing and Urban Development Act
of 1968 (12 U.S.C. 1701x(c)(5)(A)(ii)).
(d) Effective Date.--The amendments made under subsection (a) shall
take effect 150 days after the date of enactment of this Act.
<all>
Introduced in Senate
Read twice and referred to the Committee on Veterans' Affairs.
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