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SCRA: Servicemembers Civil Relief Act

Updated: Jun 15, 2020

This federal law imposes limits on interest rates and fees that lending institutions can legally charge active duty members, spouses and domestic partners.

While the law include special consideration wit reference to vehicle leases, payday loans, mortgages and housing rights. The SCRA applies to credit card accounts opened prior to coming onto active military service, however many credit cards issuers extended the benefits to credit cards acquired while active duty.

The sailors and soldiers civil relief act SSCRA:

The SSCRA was enacted in 2003 and has changed into the SCRA!

It was created to ease the financial burdens on service members during their periods of military service. It begins the day they enter delayed enlistment program or BMT through whenever they separate + 180 days. The ACT applies to all members that are full-time active-duty members of any of the five branches of the Army, Navy, Air Force, Marine Corps and Coast Guard reservist on federal active duty, meaning if you're called up members of the national guard on federal orders.

The act applies to rental agreements, security deposits, prepaid rent, eviction, installment contracts, credit card interest, mortgage interest, mortgage foreclosure any type of civil judicial proceedings. Under certain circumstances it can cover the members of service members dependents as well those who have cosigner with them on a loan and this includes the spouse or their children. It applies when the other person whom the service member has more than half of the financial support in the past hundred eighty days. Auto lease, life insurance and health insurance as well as income tax payments.

One of its biggest benefits is a 6% interest rate cap and this applies to any loan that you're carrying with you when you enter active duty service. However, you have to ensure that you give the creditor a written notice and a copy of your orders. At that time the creditor will forgive not just defer the interest to no more than 6% and creditor must forgive this interest retroactively.

Another benefit is a residential apartment lease termination. This applies to having to break the lease due to military orders they can't be released from.

Visit your bases family Readiness Center.

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