There were a number of holdings in this unpublished decision, but we’ll focus just on the SCRA claim. In Kwon v. Santander Consumer USA, 2018 WL 3546498, at *2 (C.A.2 (N.Y.), 2018), the Court of Appeals affirmed that the Plaintiff did not plead enough to state a claim under the SCRA.
Nor do we discern any error in the district court’s dismissal of Kwon’s SCRA claim. SCRA was intended to “prevent default judgments from being entered against members of the armed services in circumstances where they might be unable to appear and defend themselves,” and thus permits servicemembers to stay or suspend certain civil obligations. United States v. Kaufman, 453 F.2d 306, 308–09 (2d Cir. 1971); see 50 U.S.C. §§ 3933, 3934. SCRA also contains an anti-retaliation provision that bars creditors from creating “[a]n adverse report relating to the creditworthiness of the servicemember” based on a servicemember’s SCRA application to stay a civil obligation. 50 U.S.C. § 3919(3). Here, Kwon alleges that he exercised his SCRA rights in 2001 and Santander knew that he was a former servicemember. But, fatal to his claim, Kwon does not allege that Santander even knew that he exercised his rights under SCRA or that Santander submitted an adverse credit report because of the exercise of his rights, and thus has not plausibly alleged a claim under SCRA.