Avoid These Pitfalls

Filing an SCRA claim should be straightforward: you provide proof of military service and your pre-service debt, the lender reduces your rate to 6%. Simple, right?

Unfortunately, we've seen thousands of claims delayed, denied, or underpaid due to preventable mistakes. Here are the most common errors and how to avoid them.

Mistake #1: Incomplete Military Documentation

The problem: Submitting orders that don't clearly show your active duty start date, or using documents that lenders don't recognize.

Why it happens: Different branches and commands produce different formats. What seems obvious to you may not be clear to a civilian lender's processing department.

The fix:

  • Include both your orders AND a Leave and Earnings Statement (LES)
  • Ensure your active duty start date is clearly visible
  • If your orders are complex, include a cover letter highlighting the key dates
  • For Guard/Reserve, clearly show Title 10 status and duration

Mistake #2: Wrong Contact Method

The problem: Calling general customer service instead of the military benefits department, or sending requests to the wrong address.

Why it happens: Most lenders' websites prominently display general contact information, but bury military-specific resources.

The fix:

  • Search specifically for "[Lender name] SCRA department" or "military benefits"
  • Ask for the military/SCRA department when you call
  • Use certified mail with return receipt for written requests
  • Keep records of all communications

Mistake #3: Missing the Debt Origin Date

The problem: Not proving that the debt was incurred before active duty service began.

Why it happens: Service members assume lenders will look this up. They won't—and if they can't verify the debt is pre-service, they'll deny the claim.

The fix:

  • Include your account opening date in your request letter
  • Attach a statement showing the account open date
  • For loans, include the original loan agreement if available
  • Be explicit: "This account was opened on [DATE], which is before my active duty start date of [DATE]"

Mistake #4: Forgetting to Request Retroactive Application

The problem: Only requesting the 6% rate going forward, missing out on refunds for past overpayments.

Why it happens: Many service members don't realize retroactive refunds are available. Lenders certainly won't volunteer this information.

The fix:

  • Always explicitly request retroactive application to your active duty start date
  • Request a refund of all interest paid above 6% since that date
  • Calculate the approximate refund amount so you can verify what you receive

Mistake #5: Failing to Follow Up

The problem: Submitting a request and assuming it's being processed, only to discover months later that nothing happened.

Why it happens: Life is busy. Deployments, PCS moves, and daily demands push follow-up off the priority list.

The fix:

  • Set a calendar reminder for 30 days after submission
  • Call to confirm receipt and ask for a case number
  • Keep a log of all contacts with dates and representative names
  • Escalate promptly if you don't receive timely responses

Mistake #6: Not Filing for All Qualifying Accounts

The problem: Filing for obvious debts (mortgage, auto loan) but forgetting smaller accounts that also qualify.

Why it happens: Service members focus on big-ticket items and overlook credit cards, personal loans, and other accounts.

The fix:

  • Pull your credit report and review every account
  • Check the open date of each account against your active duty start date
  • File for every qualifying account, regardless of balance
  • Don't forget medical payment plans, furniture financing, and store cards

Mistake #7: Accepting the First Response Without Verification

The problem: Trusting that the lender correctly applied the rate reduction and calculated the refund.

Why it happens: We assume financial institutions know what they're doing. Often, they don't—or they make errors that favor them.

The fix:

  • Verify the new interest rate is exactly 6%
  • Confirm the retroactive date matches your active duty start date
  • Calculate your expected refund independently
  • Challenge discrepancies in writing

Mistake #8: Not Keeping Records

The problem: Losing track of what was filed, what was received, and what was promised.

Why it happens: SCRA claims touch multiple accounts across multiple lenders over extended time periods. Details get lost.

The fix:

  • Create a spreadsheet tracking every account and claim
  • Save all correspondence (emails, letters, confirmations)
  • Note dates, times, and names for phone calls
  • Keep copies of everything submitted

When Things Go Wrong

If your claim is denied or mishandled:

  1. Request a written explanation of the denial
  2. Review the explanation for errors or misunderstandings
  3. Escalate to a supervisor with additional documentation
  4. File a CFPB complaint if the lender isn't cooperating
  5. Contact your installation's legal assistance office for help

SCRA claims shouldn't be complicated. By avoiding these common mistakes, you'll get your benefits faster and ensure you receive every dollar you're owed.