Dealing with debt collectors is stressful enough. But if you're on active duty, you have powerful federal protections that most collectors hope you don't know about.

The SCRA doesn't make your debts disappear—but it does limit what creditors and collectors can do while you're serving.

SCRA Protections Against Debt Collection

1. No Default Judgments

A creditor or debt collector cannot get a default judgment against you in court while you're on active duty.

Before entering judgment, courts must:

  • Determine whether you're in military service
  • Appoint an attorney to represent your interests if you don't appear
  • Stay proceedings if your military service affects your ability to defend

This applies to all civil cases—credit card lawsuits, collection actions, repossessions, evictions, and more.

2. Interest Rate Cap on Pre-Service Debts

The 6% interest rate cap means collectors cannot:

  • Charge more than 6% interest on pre-service debts
  • Add fees that push the effective rate above 6%
  • Collect interest charges you shouldn't have been charged

3. Stay of Proceedings

You can request to stay (pause) any civil court proceeding for at least 90 days if your military service materially affects your ability to appear.

This can be extended if your service continues to affect your ability to participate.

4. Repossession Protection

Creditors cannot repossess property—vehicles, equipment, furniture—without a court order while you're on active duty.

What Debt Collectors CANNOT Do

Beyond SCRA protections, debt collectors are also bound by the Fair Debt Collection Practices Act (FDCPA). Combined with SCRA, this means collectors:

Cannot harass you:

  • No calling at unusual hours
  • No threats of violence or harm
  • No repeated calls intended to annoy
  • No profane or abusive language

Cannot deceive you:

  • No falsely claiming to be attorneys or government officials
  • No threatening actions they can't legally take
  • No misrepresenting the amount you owe

Cannot ignore your SCRA rights:

  • No collecting interest above 6% on pre-service debts
  • No pursuing default judgments without court process
  • No repossessing without court order

How to Assert Your SCRA Rights

Step 1: Document Everything

  • Keep records of all calls, letters, and communications
  • Note dates, times, and what was said
  • Save all written correspondence

Step 2: Notify Them of Your Military Status

Send a written notice that includes:

  • Your active duty status
  • Copy of military orders
  • Reference to SCRA protections
  • Request that they honor your rights under the law

Step 3: Request Debt Validation

Under FDCPA, you can request written verification of:

  • The amount of the debt
  • The name of the original creditor
  • Proof they have the right to collect

They must stop collection efforts until they provide this verification.

Step 4: Assert SCRA Rate Cap

If the debt is from before active duty, request the 6% rate cap and refund of any excess interest charged.

What If a Collector Violates Your Rights?

SCRA violations can result in serious consequences for the collector:

  • Actual damages for any financial harm
  • Statutory damages under FDCPA
  • Attorney's fees and court costs
  • Voiding of improper judgments

If you believe your rights have been violated:

  1. Contact your base legal assistance office
  2. File a complaint with the CFPB (Consumer Financial Protection Bureau)
  3. Report to your state attorney general
  4. Consult with a consumer rights attorney

Dealing with Specific Collection Scenarios

Wage Garnishment

Collectors generally need a court judgment to garnish wages. With SCRA protections against default judgment, they can't get that judgment without proper process.

If you're facing garnishment, you may be able to:

  • Challenge the underlying judgment
  • Request a stay while on active duty
  • Reopen improperly entered judgments

Bank Account Levies

Similar to garnishment, bank levies typically require a judgment. SCRA protections apply to the judgment process.

Property Liens

While creditors may be able to place liens on property, they cannot foreclose on real property during your service plus 12 months without court approval.

Communicating With Collectors

When you must communicate with debt collectors:

  • Always communicate in writing when possible
  • Send letters via certified mail with return receipt
  • Keep copies of everything
  • Never admit to more than you have to
  • Know that calls may be recorded—be professional

The Bottom Line

Debt collectors rely on people not knowing their rights. As an active duty service member, you have more protections than most consumers.

Don't let collectors push you around. The law is on your side.