50 U.S.C. §3956 — Termination of certain consumer contracts

scra-50usc-3956

50 U.S.C. §3956 grants a servicemember the right to terminate certain consumer service contracts (commercial mobile / telephone exchange / internet access / multichannel video / gym / home security) on PCS, qualifying deployment, or stop-movement orders.

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source:
  type: regulation
  id: scra-50usc-3956
  authority: 50 U.S.C. §3956 — Termination of certain consumer contracts
  description: |
    50 U.S.C. §3956 grants a servicemember the right to terminate certain
    consumer service contracts (commercial mobile / telephone exchange /
    internet access / multichannel video / gym / home security) on PCS,
    qualifying deployment, or stop-movement orders.
obligations:
  - id: scra-50usc-3956-a1-servicemember-right-to-terminate
    canonical_id: scra-50usc-3956-a1-servicemember-right-to-terminate
    section: 50 U.S.C. §3956(a)(1) — Servicemember right to terminate covered consumer contract
    description: |
      A servicemember may terminate a §3956(b) covered consumer contract
      (commercial mobile, telephone exchange, internet access, multichannel
      video programming, gym membership, or home security) at any time
      after (A) the date the servicemember receives military orders to
      relocate for not less than 90 days to a location that does not
      support the contract; or (B) the date the servicemember, while in
      military service, receives PCS orders, enters the contract, then
      receives a stop-movement order of indefinite or ≥30-day duration
      preventing use of the services. To the extent [LENDER] (or an
      affiliate) provides any §3956(b) covered service, [LENDER] must
      honor a properly delivered termination notice.
    type: do
    audit_question: For every §3956(b) covered consumer contract [LENDER] (or an affiliate) provides to a servicemember, can [LENDER] evidence honoring of any §3956(a)(1) termination notice delivered with military orders?
    program_review: Where [LENDER] or an affiliate provides a §3956(b) covered service, do the P&Ps ensure a properly delivered §3956(a)(1) termination notice with qualifying military orders (90+-day relocation, or PCS-then-stop-movement) is honored?
    file_review: 'On covered consumer-contract files, read the notes: confirm any termination notice with orders was honored. The compliance person judges whether the orders qualified under §3956(a)(1).'
    judgment: true
    feeds: []
    workflow_phase: servicing
    owner_role: servicemember_relations_specialist
    secondary_owner_role: compliance_officer
    cadence: per-servicemember-event
    consequence: Civil action under SCRA for non-recognition of properly delivered termination; potential DOJ-Servicemember-Enforcement action.
    tags:
      - round-b
      - regulator-direct
      - scra
      - consumer-contract
      - ancillary
      - promoted
    primary_source:
      tier: 1
      authority: 50 U.S.C. §3956(a)(1)
      source_class: scra-statute
      source_url: https://www.law.cornell.edu/uscode/text/50/3956
      snapshot_id: 6ebab567d36f868e
      fetched_at: '2026-05-22T18:52:51Z'
      content_hash: sha256:b5a0f17235499394989d7db6699fb38ac98c8990757d7fcd1c2fba6452d2b393
      paragraph_quote: (1) Termination A servicemember may terminate a contract described in subsection (b) at any time after—
      drafter_attestation: |
        Copied verbatim from snapshot 6ebab567d36f868e (content.txt) at
        2026-05-22T19:30Z. Substring is the §3956(a)(1) termination
        headline; the (A)/(B) triggers and (b) covered-contract scope are
        paraphrased in description.
    promoted_at: '2026-05-22T19:10:10+00:00'
    promoted_from: scra-50usc-3956-roundb-v1.yaml
  - id: scra-50usc-3956-a3-manner-of-termination
    canonical_id: scra-50usc-3956-a3-manner-of-termination
    section: 50 U.S.C. §3956(a)(3) — Manner of termination
    description: |
      Termination of a §3956(b) covered contract is made by delivery of a
      written or electronic notice of termination, together with a copy of
      the servicemember's military orders, to the service provider,
      delivered in accordance with industry standards for notification of
      terminations, together with the date on which the service is to be
      terminated. [LENDER] (if providing a §3956(b) covered service) must
      accept such notice through its industry-standard termination
      channels.
    type: do
    audit_question: For any §3956(b) covered service [LENDER] provides, can [LENDER] evidence intake channels for written and electronic termination notices with orders and an effective service-termination date, consistent with industry standards under §3956(a)(3)?
    program_review: Where [LENDER] provides a §3956(b) covered service, does the program account for the manner-of-termination rule — accepting written or electronic termination notices with orders and an effective termination date through industry-standard channels?
    file_review: On covered-service terminations, confirm intake of the written/electronic notice with orders and termination date through standard channels. Objective presence check.
    judgment: false
    feeds: []
    workflow_phase: servicing
    owner_role: servicemember_relations_specialist
    secondary_owner_role: default_servicing_analyst
    cadence: per-servicemember-event
    consequence: Civil action under SCRA for non-recognition of properly delivered termination.
    tags:
      - round-b
      - regulator-direct
      - scra
      - consumer-contract
      - notice-delivery
      - promoted
    primary_source:
      tier: 1
      authority: 50 U.S.C. §3956(a)(3)
      source_class: scra-statute
      source_url: https://www.law.cornell.edu/uscode/text/50/3956
      snapshot_id: 6ebab567d36f868e
      fetched_at: '2026-05-22T18:52:51Z'
      content_hash: sha256:b5a0f17235499394989d7db6699fb38ac98c8990757d7fcd1c2fba6452d2b393
      paragraph_quote: Termination of a contract under paragraph (1) shall be made by delivery of a written or electronic notice of such termination and a copy of the servicemember ’s military orders to the service provider, delivered in accordance with industry standards for notification of terminations, together with the date on which the service is to be terminated.
      drafter_attestation: |
        Copied verbatim from snapshot 6ebab567d36f868e (content.txt) at
        2026-05-22T19:30Z. Substring is the §3956(a)(3) manner-of-
        termination sentence in its entirety.
    promoted_at: '2026-05-22T19:10:10+00:00'
    promoted_from: scra-50usc-3956-roundb-v1.yaml
  - id: scra-50usc-3956-e1-no-early-termination-charge
    canonical_id: scra-50usc-3956-e1-no-early-termination-charge
    section: 50 U.S.C. §3956(e)(1) — No early-termination charge
    description: |
      For any contract terminated under §3956, the service provider may not
      impose an early-termination charge. Any tax or other obligation or
      liability of the servicemember that, in accordance with the terms of
      the contract, is due and unpaid or unperformed at the time of
      termination shall be paid or performed by the servicemember. [LENDER]
      (if providing a §3956(b) covered service) may not assess an
      early-termination charge against a servicemember whose contract was
      properly terminated under §3956.
    type: dont
    audit_question: For any §3956-terminated contract [LENDER] provided, can [LENDER] evidence that no early-termination charge was imposed, while preserving the servicemember's obligation for amounts properly due and unpaid at the time of termination?
    program_review: Where [LENDER] provides a §3956(b) covered service, do the P&Ps ensure no early-termination charge is imposed on a properly terminated contract, while preserving the servicemember's obligation for amounts properly due and unpaid at termination?
    file_review: On §3956-terminated contracts, confirm no early-termination charge was imposed and only properly-due amounts were retained. Objective presence/computation check.
    judgment: false
    feeds: []
    workflow_phase: servicing
    owner_role: servicemember_relations_specialist
    secondary_owner_role: compliance_officer
    cadence: per-servicemember-event
    consequence: Civil action under SCRA; restitution of any improperly imposed early-termination charge.
    tags:
      - round-b
      - regulator-direct
      - scra
      - consumer-contract
      - fees
      - promoted
    primary_source:
      tier: 1
      authority: 50 U.S.C. §3956(e)(1)
      source_class: scra-statute
      source_url: https://www.law.cornell.edu/uscode/text/50/3956
      snapshot_id: 6ebab567d36f868e
      fetched_at: '2026-05-22T18:52:51Z'
      content_hash: sha256:b5a0f17235499394989d7db6699fb38ac98c8990757d7fcd1c2fba6452d2b393
      paragraph_quote: For any contract terminated under this section, the service provider under the contract may not impose an early termination charge, but any tax or any other obligation or liability of the servicemember that, in accordance with the terms of the contract, is due and unpaid or unperformed at the time of termination of the contract shall be paid or performed by the servicemember .
      drafter_attestation: |
        Copied verbatim from snapshot 6ebab567d36f868e (content.txt) at
        2026-05-22T19:30Z. Substring is the §3956(e)(1) no-early-
        termination-charge sentence in its entirety.
    promoted_at: '2026-05-22T19:10:10+00:00'
    promoted_from: scra-50usc-3956-roundb-v1.yaml
_promotion_history:
  - promoted_at: '2026-05-22T19:10:10+00:00'
    candidate_path: obligations\_remediation\_round_b_drafts\scra-50usc-3956-roundb-v1.yaml
    candidates_promoted: 3
    candidates_skipped_existing: 0

Verbatim regulatory text (3)

Verbatim provisions from 50 U.S.C. §3956 — Termination of certain consumer contracts — each quote is a verified substring of the regulator-published source snapshot, not retyped. Quoted for reference; this is not legal advice. The operational layer (P&P updates, prompts) lives in the regulation update kits.

50 U.S.C. §3956(a)(1) — Servicemember right to terminate covered consumer contract

(1) Termination A servicemember may terminate a contract described in subsection (b) at any time after—

Source: 50 U.S.C. §3956(a)(1) · source URL · snapshot 6ebab567d36f868e

50 U.S.C. §3956(a)(3) — Manner of termination

Termination of a contract under paragraph (1) shall be made by delivery of a written or electronic notice of such termination and a copy of the servicemember ’s military orders to the service provider, delivered in accordance with industry standards for notification of terminations, together with the date on which the service is to be terminated.

Source: 50 U.S.C. §3956(a)(3) · source URL · snapshot 6ebab567d36f868e

50 U.S.C. §3956(e)(1) — No early-termination charge

For any contract terminated under this section, the service provider under the contract may not impose an early termination charge, but any tax or any other obligation or liability of the servicemember that, in accordance with the terms of the contract, is due and unpaid or unperformed at the time of termination of the contract shall be paid or performed by the servicemember .

Source: 50 U.S.C. §3956(e)(1) · source URL · snapshot 6ebab567d36f868e