SEC. 2. TERMINATION OR SUSPENSION BY SERVICEMEM-
BERS OF CERTAIN SERVICE CONTRACTS EN-
TERED INTO BEFORE PERMANENT CHANGE 
OF STATION OF DEPLOYMENT ORDERS. 
(a) TERMINATION.—Title III of the Servicemembers 
Civil Relief Act (50 U.S.C. App. 531 et seq.) is amended— 
(1) by redesignating section 308 as section 309; 
and 
(2) by inserting after section 307 the following 
new section 308: 
‘‘SEC. 308. TERMINATION OR SUSPENSION OF SERVICE 
CONTRACTS. 
‘‘(a) TERMINATION BY SERVICEMEMBER.—A person 
in military service who is party to a contract described 
in subsection (b) may, at the person’s option, terminate 
or suspend the contract at any time after— 
‘‘(1) the date of the entry of the person into 
military service; or 
‘‘(2) the date of the military orders of the per-
son described in subsection (b)(2), as the case may 
be. 
‘‘(b) COVERED CONTRACTS.—This section applies to 
a contract for cellular phone service, cable or satellite tele-
vision service, internet service, automobile insurance, 
water, electricity, oil, gas, telephone, or other utility, if— 
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‘‘(1) the contract is executed by or on behalf of 
a person (or the dependent of a person) who there-
after and during the term of the contract enters 
military service (or receives orders to enter military 
service) under a call or order specifying a period of 
not less than 90 days (or who enters military service 
under a call or order specifying a period of 90 days 
or less and who, without a break in service, receives 
orders extending the period of military service to a 
period of not less than 90 days); or 
‘‘(2) the person enters into the contract while 
in military service and thereafter receives military 
orders— 
‘‘(A) for a change of permanent station— 
‘‘(i) from a location in the continental 
United States to a location outside the 
continental United States; or 
‘‘(ii) from a location in a State out-
side the continental United States to any 
location outside that State; or 
‘‘(B) to deploy with a military unit, or as 
an individual in support of a military operation, 
for a period of not less than 180 days. 
‘‘(c) MANNER OF TERMINATION.— 
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‘‘(1) IN GENERAL.—Termination of a contract 
under subsection (a) is made by delivery by the per-
son in military service of written notice of such ter-
mination, and a copy of the servicemember’s military 
orders, to the other party to the contract (or to that 
party’s grantee or agent). 
‘‘(2) NATURE OF NOTICE.—Delivery of notice 
under paragraph (1) may be accomplished— 
‘‘(A) by hand delivery; 
‘‘(B) by private business carrier; 
‘‘(C) by facsimile; or 
‘‘(D) by placing the written notice in an 
envelope with sufficient postage and with return 
receipt requested, and addressed as designated 
by the party to be notified (or that party’s 
grantee or agent), and depositing the written 
notice in the United States mails. 
‘‘(d) DATE OF CONTRACT TERMINATION.—Termi-
nation or suspension of a service contract under subsection 
(a) is effective as of the date on which the notice under 
subsection (c) is delivered. 
‘‘(e) ARREARAGES AND OTHER OBLIGATIONS AND 
LIABILITIES.—Contract amounts unpaid for the period 
preceding the effective date of the contract termination 
shall be paid on a prorated basis. The other party to the 
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contract may not impose an early termination or suspen-
sion charge, but any tax or any other obligation or liability 
of the person in military service that, in accordance with 
the terms of the contract, is due and unpaid at the time 
of termination of the contract shall be paid by the person 
in military service. 
‘‘(f) FEES PAID IN ADVANCE.—A fee or amount paid 
in advance for a period after the effective date of the ter-
mination of the contract shall be refunded to the person 
in military service by the other party (or that party’s 
grantee or agent) within 30 days of the effective date of 
the termination of the contract. 
‘‘(g) RELIEF TO OTHER PARTY.—Upon application 
by the other party to the contract to a court before the 
termination date provided in the written notice, relief 
granted by this section to a person in military service may 
be modified as justice and equity require. 
‘‘(h) PENALTIES.— 
‘‘(1) MISDEMEANOR.—Any person who know-
ingly seizes, holds, or detains the personal effects, 
funds, or other property of a person in military serv-
ice (or of a dependent of a person in military serv-
ice) who lawfully terminates a contract covered by 
this section shall be fined as provided in title 18, 
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United States Code, imprisoned for not more than 
one year, or both. 
‘‘(2) PRESERVATION.—The remedy and rights 
provided under this section are in addition to and do 
not preclude any remedy for wrongful conversion 
otherwise available under law to the person claiming 
relief under this section, including any award for 
consequential or punitive damages. 
‘‘(i) EQUITABLE RELIEF.— 
‘‘(1) IN GENERAL.—In addition to any other 
remedy available under law, if a person in military 
service has reason to believe that another party to 
a contract has violated or is violating this section, 
the person in military service may— 
‘‘(A) bring an action to enjoin the violation 
in any appropriate United States district court 
or in any other court of competent jurisdiction; 
or 
‘‘(B) bring an action in any appropriate 
United States district court or in any other 
court of competent jurisdiction to recover— 
‘‘(i) damages for which the other 
party is liable to the person in military 
service under this section; and 
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‘‘(ii) additional damages of not more 
than $10,000 for each willful or negligent 
violation of this section. 
‘‘(2) ATTORNEY FEES.—If a person in military 
service is awarded damages under an action de-
scribed under paragraph (1), the person shall be 
awarded, in addition, the costs of the action and rea-
sonable attorney fees, as determined by the court. 
‘‘(j) MILITARY ORDER.—For the purposes of this sec-
tion, the term ‘military orders’, with respect to a 
servicemember, means official military orders, or any noti-
fication, 
certification, 
or 
verification 
from 
the 
servicemember’s commanding officer, with respect to the 
servicemember’s current or future military duty status.’’. 
(b) CLERICAL AMENDMENT.—The table of contents 
in section 1(b) of such Act is amended by striking the 
item relating to section 308 and inserting after the item 
relating to section 307 the following new items: 
‘‘Sec. 308. Termination or suspension of service contracts. 
‘‘Sec. 309. Extension of protections to dependents.’’. 
SEC. 3. PENALTIES FOR VIOLATION OF INTEREST RATE 
LIMITATION UNDER SERVICEMEMBERS CIVIL 
RELIEF ACT. 
Section 207 of such Act (50 U.S.C. App. 527) is 
amended by adding at the end the following new sub-
section: 
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