II 

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. 

1 Be it enacted by the Senate and House of Representa2 tives of the United States of America in Congress assembled, 

3 SECTION 1. SHORT TITLE. 

4 This Act may be cited as the ‘‘Servicemembers Home 

5 Protection Act of 2005’’. 

6 SEC. 2. FINDINGS. 

7 Congress makes the following findings: 
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1 (1) Servicemembers and their families face 

2 overwhelming challenges in their daily lives when 

3 servicemembers are called to active duty, including 

4 financial hardship that can push servicemember fam5 ilies to the brink of foreclosure or eviction. 

6 (2) Congress long ago recognized the special 

7 burden that servicemembers encounter when their 

8 deployment impedes their ability to meet previously 

9 incurred financial obligations and, in enacting the 

10 Servicemembers Civil Relief Act in 2003, restated 

11 and improved protections for servicemembers in the 

12 predecessor to that Act, the Soldier’ and Sailors’ 

13 Civil Relief Act of 1940. 

14 (3) The protections of the Servicemembers Civil 

15 Relief Act are not uniformly applied because some 

16 lenders, debt collectors, landlords, lawyers, and 

17 judges are either unfamiliar with the Act or ignore 

18 it. 

19 (4) The Department of Defense does not ade20 quately educate servicemembers or their families re21 garding their rights under the Servicemembers Civil 

22 Relief Act. 

23 (5) A lack of adequate information about the 

24 Servicemembers Civil Relief Act means that 

25 servicemembers serving abroad are distracted from 
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1 their duties out of concern for the foreclosure of 

2 their family homes, the eviction of their families 

3 from their dwellings, or the repossession of their 

4 families vehicles. 

5 SEC. 3. CIVIL LIABILITY FOR NONCOMPLIANCE AND EN6 FORCEMENT OF SERVICEMEMBERS CIVIL RE7 LIEF ACT. 

8 (a) GENERAL CIVIL LIABILITY AND ENFORCE9 MENT.— 

10 (1) IN GENERAL.—The Servicemembers Civil 

11 Relief Act (50 U.S.C. App. 501 et seq.) is amended 

12 by adding at the end the following new title: 

13 ‘‘TITLE VIII—CIVIL LIABILITY 

14 FOR NONCOMPLIANCE AND 

15 ENFORCEMENT 

16 ‘‘SEC. 801. CIVIL LIABILITY FOR NONCOMPLIANCE. 

17 ‘‘(a) IN GENERAL.—Any person or entity (other than 

18 a servicemember or dependent) who fails to comply with 

19 any requirement imposed by this Act with respect to a 

20 servicemember or dependent is liable to such 

21 servicemember or dependent in an amount equal to the 

22 sum of— 

23 ‘‘(1) any actual damages sustained by such 

24 servicemember or dependent as a result of the fail25 ure; 
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1 ‘‘(2) such amount of punitive damages as the 

2 court may allow; 

3 ‘‘(3) such amount of consequential damages as 

4 the court may allow; 

5 ‘‘(4) such additional damages as the court may 

6 allow, in an amount not less than $100 or more 

7 than $5,000 (as determined appropriate by the 

8 court), for each violation; and 

9 ‘‘(5) in the case of any successful action to en10 force liability under this section, the cost of the ac11 tion together with reasonable attorneys fees as de12 termined by the court. 

13 ‘‘(b) ATTORNEY FEES.—On a finding by the court 

14 that an unsuccessful pleading, motion, or other paper filed 

15 in connection with an action under this section was filed 

16 in bad faith or for the purposes of harassment, the court 

17 shall award to the prevailing party attorney fees in 

18 amount that is reasonable in relation to the work expended 

19 in responding to such pleading, motion, or other paper. 

20 ‘‘SEC. 802. ADMINISTRATIVE ENFORCEMENT. 

21 ‘‘(a) ENFORCEMENT BY FEDERAL TRADE COMMIS22 SION.—(1) Except as provided in subsections (b), (c), and 

23 (d), compliance with the provisions of this Act shall be 

24 enforced by the Federal Trade Commission in accordance 

25 with the Federal Trade Commission Act with respect to 
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1 entities and persons subject to the Federal Trade Commis2 sion Act. 

3 ‘‘(2) For the purpose of the exercise by the Commis4 sion under this subsection of its functions and powers 

5 under the Federal Trade Commission Act, a violation of 

6 any requirement or prohibition imposed by this Act shall 

7 constitute an unfair or deceptive act or practice in com8 merce in violation of section 5(a) of the Federal Trade 

9 Commission Act, and shall be subject to enforcement by 

10 the Commission with respect to any entity or person sub11 ject to enforcement by the Commission pursuant to this 

12 subsection, irrespective of whether such person or entity 

13 is engaged in commerce or meets any other jurisdictional 

14 tests under the Federal Trade Commission Act. 

15 ‘‘(3) The Commission shall have such procedural, in16 vestigative, and enforcement powers, including the power 

17 to issue procedural rules in enforcing compliance with the 

18 requirements imposed by this Act and to require the filing 

19 of reports, the production of documents, and the appear20 ance of witnesses, as though the applicable terms and con21 ditions of the Federal Trade Commission Act were part 

22 of this Act. 

23 ‘‘(4) Any person or entity violating any provision of 

24 this Act shall be subject to the penalties, and entitled to 

25 the privileges and immunities, provided in the Federal 
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1 Trade Commission Act as though the applicable terms and 

2 provisions of the Federal Trade Commission Act were part 

3 of this Act. 

4 ‘‘(5)(A) The Commission may commence a civil ac5 tion to recover a civil penalty in a district court of the 

6 United States against any person or entity that has en7 gaged in such violation. In such action, such person or 

8 entity shall be liable, in addition to any amounts otherwise 

9 recoverable, for a civil penalty in the amount of $5,000 

10 to $50,000, as determined appropriate by the court for 

11 each violation. 

12 ‘‘(B) In determining the amount of a civil penalty 

13 under subparagraph (A), the court shall take into account 

14 the degree of culpability, any history of prior such con15 duct, ability to pay, effect on ability to continue to do busi16 ness, and such other matters as justice may require. 

17 ‘‘(b) ENFORCEMENT BY OTHER REGULATORY AGEN18 CIES.—Compliance with the requirements imposed by this 

19 Act with respect to financial institutions shall be enforced 

20 under— 

21 ‘‘(1) section 8 of the Federal Deposit Insurance 

22 Act, in the case of— 

23 ‘‘(A) national banks, and Federal branches 

24 and Federal agencies of foreign banks, and any 

25 subsidiaries of such (except brokers, dealers, 
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1 persons providing insurance, investment compa2 nies, and investment advisers) by the Office of 

3 the Comptroller of the Currency; 

4 ‘‘(B) member banks of the Federal Reserve 

5 System (other than national banks), branches 

6 and agencies of foreign banks (other than Fed7 eral branches, Federal agencies, and insured 

8 State branches of foreign banks), commercial 

9 lending companies owned or controlled by for10 eign banks, and organization operating under 

11 section 25 or 25A of the Federal Reserve Act, 

12 and bank holding companies and their nonbank 

13 subsidiaries or affiliates (except brokers, deal14 ers, persons providing insurance, investment 

15 companies, and investment advisers) by the 

16 Board of Governors of the Federal Reserve Sys17 tem; and 

18 ‘‘(C) banks insured by the Federal Deposit 

19 Insurance Corporation (other than members of 

20 the Federal Reserve System) and insured State 

21 branches of foreign banks, and any subsidiaries 

22 of such entities (except brokers, dealers, per23 sons providing insurance, investment compa24 nies, and investment advisers) by the Board of 
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1 Directors of the Federal Deposit Insurance Cor2 poration; 

3 ‘‘(2) section 8 of the Federal Deposit Insurance 

4 Act, by the Director of the Office of Thrift Super5 vision, in the case of a savings association the depos6 its of which are insured by the Federal Deposit In7 surance Corporation and any subsidiaries of such 

8 saving associations (except brokers, dealers, persons 

9 providing insurance, investment companies, and in10 vestment advisers); 

11 ‘‘(3) the Federal Credit Union Act, by the Ad12 ministrator of the National Credit Union Adminis13 tration with respect to any federally insured credit 

14 union, and any subsidiaries of such an entity; 

15 ‘‘(4) State insurance law, by the applicable 

16 State insurance authority of the State in which a 

17 person is domiciled, in the case of a person providing 

18 insurance; and 

19 ‘‘(5) the Federal Trade Commission Act, by the 

20 Federal Trade Commission for any other financial 

21 institution or other person that is not subject to the 

22 jurisdiction of any agency or authority under para23 graphs (1) through (4). 

24 ‘‘(c) PRIVATE CAUSE OF ACTION.—A servicemember, 

25 dependent, or other person protected by a provision of this 
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1 Act may commence an action in a district court of the 

2 United States, or in a State court of competent jurisdic3 tion, to seek enforcement of the protection afforded by 

4 such provision and the imposition of civil liability as speci5 fied such provision or section 801. 

6 ‘‘(d) CONSTRUCTION OF ENFORCEMENT.— 

7 ‘‘(1) ENFORCEMENT BY FTC.—The enforcement 

8 of the provisions of this Act by the Federal Trade 

9 Commission pursuant to subsection (a) shall be in 

10 addition to any other enforcement of such provisions 

11 by the Department of Justice, private cause of ac12 tion, or other mechanism afforded by State law. 

13 ‘‘(2) CONSTRUCTION OF REMEDIES.—The rem14 edies for violations of the provisions of this Act pro15 vided for under subsections (a), (b), and (c) are in 

16 addition to any other remedies for violations of such 

17 provisions under Federal or State law.’’. 

18 (2) CLERICAL AMENDMENT.—The table of con19 tents in the first section of that Act is amended by 

20 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.’’. 

21 (b) LIABILITY FOR NONCOMPLIANCE.— 

22 (1) Section 301(c) of the Servicemembers Civil 

23 Relief Act (50 U.S.C. App. 531(c)) is amended by 
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1 striking paragraph (2) and inserting the following 

2 new paragraphs: 

3 ‘‘(2) CIVIL LIABILITY FOR NONCOMPLIANCE.— 

4 Any person or entity (other than a servicemember or 

5 dependent) who fails to comply with any require6 ment imposed by this section with respect to a 

7 servicemember or dependent is liable to such 

8 servicemember or dependent in an amount equal to 

9 the sum of— 

10 ‘‘(A) any actual damages sustained by 

11 such servicemember or dependent as a result of 

12 the failure; 

13 ‘‘(B) such amount of punitive damages as 

14 the court may allow; 

15 ‘‘(C) such amount of consequential dam16 ages as the court may allow; 

17 ‘‘(D) such additional damages as the court 

18 may allow, in an amount not less than $100 or 

19 more than $5,000 (as determined appropriate 

20 by the court), for each violation; and 

21 ‘‘(E) in the case of any successful action to 

22 enforce liability under this section, the cost of 

23 the action together with reasonable attorneys 

24 fees as determined by the court. 
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1 ‘‘(3) ATTORNEY FEES.—On a finding by the 

2 court that an unsuccessful pleading, motion, or other 

3 paper filed in connection with an action under this 

4 section was filed in bad faith or for the purposes of 

5 harassment, the court shall award to the prevailing 

6 party attorney fees in amount that is reasonable in 

7 relation to the work expended in responding to such 

8 pleading, motion, or other paper.’’. 

9 (2) Section 302(b) of that Act (50 U.S.C. App. 

10 532(b)) is amended by striking paragraph (2) and 

11 inserting the following new paragraphs: 

12 ‘‘(2) CIVIL LIABILITY FOR NONCOMPLIANCE.— 

13 Any person or entity (other than a servicemember or 

14 dependent) who fails to comply with any require15 ment imposed by this section with respect to a 

16 servicemember or dependent is liable to such 

17 servicemember or dependent in an amount equal to 

18 the sum of— 

19 ‘‘(A) any actual damages sustained by 

20 such servicemember or dependent as a result of 

21 the failure; 

22 ‘‘(B) such amount of punitive damages as 

23 the court may allow; 

24 ‘‘(C) such amount of consequential dam25 ages as the court may allow; 
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1 ‘‘(D) such additional damages as the court 

2 may allow, in an amount not less than $100 or 

3 more than $5,000 (as determined appropriate 

4 by the court), for each violation; and 

5 ‘‘(E) in the case of any successful action to 

6 enforce liability under this section, the cost of 

7 the action together with reasonable attorneys 

8 fees as determined by the court. 

9 ‘‘(3) ATTORNEY FEES.—On a finding by the 

10 court that an unsuccessful pleading, motion, or other 

11 paper filed in connection with an action under this 

12 section was filed in bad faith or for the purposes of 

13 harassment, the court shall award to the prevailing 

14 party attorney fees in amount that is reasonable in 

15 relation to the work expended in responding to such 

16 pleading, motion, or other paper.’’. 

17 (3) Section 303(d) of that Act (50 U.S.C. App. 

18 533(d)) is amended by striking paragraph (2) and 

19 inserting the following new paragraphs: 

20 ‘‘(2) CIVIL LIABILITY FOR NONCOMPLIANCE.— 

21 Any person or entity (other than a servicemember or 

22 dependent) who fails to comply with any require23 ment imposed by this section with respect to a 

24 servicemember or dependent is liable to such 
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1 servicemember or dependent in an amount equal to 

2 the sum of— 

3 ‘‘(A) any actual damages sustained by 

4 such servicemember or dependent as a result of 

5 the failure; 

6 ‘‘(B) such amount of punitive damages as 

7 the court may allow; 

8 ‘‘(C) such amount of consequential dam9 ages as the court may allow; 

10 ‘‘(D) such additional damages as the court 

11 may allow, in an amount not less than $100 or 

12 more than $5,000 (as determined appropriate 

13 by the court), for each violation; and 

14 ‘‘(E) in the case of any successful action to 

15 enforce liability under this section, the cost of 

16 the action together with reasonable attorneys 

17 fees as determined by the court. 

18 ‘‘(3) ATTORNEY FEES.—On a finding by the 

19 court that an unsuccessful pleading, motion, or other 

20 paper filed in connection with an action under this 

21 section was filed in bad faith or for the purposes of 

22 harassment, the court shall award to the prevailing 

23 party attorney fees in amount that is reasonable in 

24 relation to the work expended in responding to such 

25 pleading, motion, or other paper.’’. 
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1 (4) Section 305(h) of that Act (50 U.S.C. App. 

2 535(h)) is amended by striking paragraph (2) and 

3 inserting the following new paragraphs: 

4 ‘‘(2) CIVIL LIABILITY FOR NONCOMPLIANCE.— 

5 Any person or entity (other than a servicemember or 

6 dependent) who fails to comply with any require7 ment imposed by this section with respect to a 

8 servicemember or dependent is liable to such 

9 servicemember or dependent in an amount equal to 

10 the sum of— 

11 ‘‘(A) any actual damages sustained by 

12 such servicemember or dependent as a result of 

13 the failure; 

14 ‘‘(B) such amount of punitive damages as 

15 the court may allow; 

16 ‘‘(C) such amount of consequential dam17 ages as the court may allow; 

18 ‘‘(D) such additional damages as the court 

19 may allow, in an amount not less than $100 or 

20 more than $5,000 (as determined appropriate 

21 by the court), for each violation; and 

22 ‘‘(E) in the case of any successful action to 

23 enforce liability under this section, the cost of 

24 the action together with reasonable attorneys 

25 fees as determined by the court. 
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1 ‘‘(3) ATTORNEY FEES.—On a finding by the 

2 court that an unsuccessful pleading, motion, or other 

3 paper filed in connection with an action under this 

4 section was filed in bad faith or for the purposes of 

5 harassment, the court shall award to the prevailing 

6 party attorney fees in amount that is reasonable in 

7 relation to the work expended in responding to such 

8 pleading, motion, or other paper.’’. 

9 (5) Section 306(e) of that Act (50 U.S.C. App. 

10 536(e)) is amended by striking paragraph (2) and 

11 inserting the following new paragraphs: 

12 ‘‘(2) CIVIL LIABILITY FOR NONCOMPLIANCE.— 

13 Any person or entity (other than a servicemember or 

14 dependent) who fails to comply with any require15 ment imposed by this section with respect to a 

16 servicemember or dependent is liable to such 

17 servicemember or dependent in an amount equal to 

18 the sum of— 

19 ‘‘(A) any actual damages sustained by 

20 such servicemember or dependent as a result of 

21 the failure; 

22 ‘‘(B) such amount of punitive damages as 

23 the court may allow; 

24 ‘‘(C) such amount of consequential dam25 ages as the court may allow; 
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1 ‘‘(D) such additional damages as the court 

2 may allow, in an amount not less than $100 or 

3 more than $5,000 (as determined appropriate 

4 by the court), for each violation; and 

5 ‘‘(E) in the case of any successful action to 

6 enforce liability under this section, the cost of 

7 the action together with reasonable attorneys 

8 fees as determined by the court. 

9 ‘‘(3) ATTORNEY FEES.—On a finding by the 

10 court that an unsuccessful pleading, motion, or other 

11 paper filed in connection with an action under this 

12 section was filed in bad faith or for the purposes of 

13 harassment, the court shall award to the prevailing 

14 party attorney fees in amount that is reasonable in 

15 relation to the work expended in responding to such 

16 pleading, motion, or other paper.’’. 

17 (6) Section 307(c) of that Act (50 U.S.C. App. 

18 537(c)) is amended by striking paragraph (2) and 

19 inserting the following new paragraphs: 

20 ‘‘(2) CIVIL LIABILITY FOR NONCOMPLIANCE.— 

21 Any person or entity (other than a servicemember or 

22 dependent) who fails to comply with any require23 ment imposed by this section with respect to a 

24 servicemember or dependent is liable to such 
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1 servicemember or dependent in an amount equal to 

2 the sum of— 

3 ‘‘(A) any actual damages sustained by 

4 such servicemember or dependent as a result of 

5 the failure; 

6 ‘‘(B) such amount of punitive damages as 

7 the court may allow; 

8 ‘‘(C) such amount of consequential dam9 ages as the court may allow; 

10 ‘‘(D) such additional damages as the court 

11 may allow, in an amount not less than $100 or 

12 more than $5,000 (as determined appropriate 

13 by the court), for each violation; and 

14 ‘‘(E) in the case of any successful action to 

15 enforce liability under this section, the cost of 

16 the action together with reasonable attorneys 

17 fees as determined by the court. 

18 ‘‘(3) ATTORNEY FEES.—On a finding by the 

19 court that an unsuccessful pleading, motion, or other 

20 paper filed in connection with an action under this 

21 section was filed in bad faith or for the purposes of 

22 harassment, the court shall award to the prevailing 

23 party attorney fees in amount that is reasonable in 

24 relation to the work expended in responding to such 

25 pleading, motion, or other paper.’’. 
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1 SEC. 4. OUTREACH TO MEMBERS OF THE ARMED FORCES 

2 AND THEIR DEPENDENTS ON THE 

3 SERVICEMEMBERS CIVIL RELIEF ACT. 

4 (a) OUTREACH TO MEMBERS OF THE ARMED

5 FORCES.— 

6 (1) IN GENERAL.—The Secretary concerned 

7 shall provide to each member of the Armed Forces 

8 under the jurisdiction of the Secretary pertinent in9 formation on the rights and protections available to 

10 servicemembers and their dependents under the 

11 Servicemembers Civil Relief Act (50 U.S.C. App. 

12 501 et seq.). 

13 (2) TIME OF PROVISION.—Information shall be 

14 provided to a member of the Armed Forces under 

15 paragraph (1) at times as follows: 

16 (A) During initial entry training. 

17 (B) In the case of a member of a reserve 

18 component of the Armed Forces, during initial 

19 entry training and when the member is mobi20 lized or otherwise individually called or ordered 

21 to active duty for a period of more than one 

22 year. 

23 (C) At such other times as the Secretary 

24 concerned considers appropriate. 

25 (b) OUTREACH TO DEPENDENTS.—The Secretary 

26 concerned may provide to the adult dependents of mem-
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1 bers of the Armed Forces under the jurisdiction of the 

2 Secretary pertinent information on the rights and protec3 tions available to servicemembers and their dependents 

4 under the Servicemembers Civil Relief Act. 

5 (c) DEFINITIONS.—In this section, the terms ‘‘de6 pendent’’ and ‘‘Secretary concerned’’ have the meanings 

7 given such terms in section 101 of the Servicemembers 

8 Civil Relief Act (50 U.S.C. App. 511). 

9 SEC. 5. SERVICEMEMBERS RIGHTS UNDER THE HOUSING 

10 AND URBAN DEVELOPMENT ACT OF 1968. 

11 (a) IN GENERAL.—Section 106(c)(5)(A)(ii) of the 

12 Housing and Urban Development Act of 1968 (12 U.S.C. 

13 1701x(c)(5)(A)(ii)) is amended— 

14 (1) in subclause (II), by striking ‘‘; and’’ and 

15 inserting a semicolon; 

16 (2) in subclause (III), by striking the period 

17 and inserting ‘‘; and’’; and 

18 (3) by adding at the end the following: 

19 ‘‘(IV) notify the homeowner by a 

20 statement or notice, written in plain 

21 English by the Secretary of Housing 

22 and Urban Development, in consulta23 tion with the Secretary of Defense 

24 and the Secretary of the Treasury, ex25 plaining the mortgage and foreclosure 
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1 rights of servicemembers, and the de2 pendents of such servicemembers, 

3 under the Servicemembers Civil Relief 

4 Act (50 U.S.C. App. 501 et seq.), in5 cluding the toll-free military one 

6 source number to call if 

7 servicemembers, or the dependents of 

8 such servicemembers, require further 

9 assistance.’’. 

10 (b) NO EFFECT ON OTHER LAWS.—Nothing in this 

11 section shall relieve any person of any obligation imposed 

12 by any other Federal, State, or local law. 

13 (c) DISCLOSURE FORM.—Not later than 150 days 

14 after the date of enactment of this Act, the Secretary of 

15 Housing and Urban Development shall issue a final disclo16 sure form to fulfill the requirement of section 

17 106(c)(5)(A)(ii)(IV) of the Housing and Urban Develop18 ment Act of 1968 (12 U.S.C. 1701x(c)(5)(A)(ii)). 

19 (d) EFFECTIVE DATE.—The amendments made 

20 under subsection (a) shall take effect 150 days after the 

21 date of enactment of this Act. 

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