Frequently Asked Questions

The SCRA (50 U.S.C. §§ 3901-4043) is a federal law that provides financial and legal protections to active duty military personnel. It was designed to let servicemembers focus on their military duties without worrying about certain civil obligations. Key protections include capping interest rates at 6%, preventing foreclosure and eviction, allowing lease termination, and delaying civil court proceedings.

SCRA covers members of the Army, Navy, Air Force, Marine Corps, Space Force, and Coast Guard on active duty. It also covers National Guard members when activated under federal orders (Title 10) and Reserve members called to active duty. Commissioned officers of NOAA and the Public Health Service are also covered. Some protections extend to servicemembers' dependents.

SCRA protection typically begins on the date you enter active duty and ends when your active duty period terminates. Some protections extend beyond active duty: foreclosure protection continues for 12 months after service ends, and you have 60 days after service to reopen default judgments entered during service.

You cannot lose SCRA protections during active duty, but you can voluntarily waive them in writing. However, the waiver must be made during or after military service and must specify exactly what protection you are waiving. Pre-service waivers are generally unenforceable. Also, certain benefits like the 6% interest cap only apply to debts incurred before military service.

SCRA (Servicemembers Civil Relief Act) protects debts incurred BEFORE military service and caps interest at 6%. MLA (Military Lending Act) protects against predatory lending for certain loans taken DURING service and caps interest at 36%. They are complementary laws with different purposes and coverage.

Under SCRA Section 3937, interest rates on debts incurred before entering military service are capped at 6% per year during active duty. This applies to mortgages, credit cards, auto loans, student loans, and other obligations. The excess interest above 6% is forgiven—not deferred—meaning you never have to pay it back.

The 6% cap applies to all debts incurred before you entered active duty, including: credit cards, mortgages, auto loans, student loans (private and federal), personal loans, home equity lines of credit, and other installment loans. Debts taken out after entering active duty do not qualify.

Yes! If you've been paying more than 6% interest on pre-service debts during active duty, lenders are required to refund the excess. You can request retroactive SCRA benefits even years after the fact. Many servicemembers are owed thousands of dollars in refunds they never claimed.

Submit a written request to each lender along with a copy of your military orders. Include your name, account number, a statement that you're requesting SCRA benefits, and how you're materially affected by military service. The lender must reduce your rate within 30 days of receiving your complete request.

No, requesting SCRA benefits does not negatively affect your credit score. In fact, the reduced interest rate can help you pay down debt faster, which may improve your credit score over time. Lenders are prohibited from reporting SCRA participation negatively.

Yes! California's Military and Veterans Code provides a 4% interest rate cap on certain loans for California-based servicemembers—lower than the federal 6% cap. California also covers state-activated National Guard members (Title 32) who aren't covered by federal SCRA.

National Guard members are covered by SCRA when federally activated under Title 10 orders. However, state activations under Title 32 are NOT automatically covered by federal SCRA. Some states (like California, Illinois, and Florida) have their own laws extending protections to state-activated Guard members.

Yes, Reserve members are covered by SCRA when called to active duty under federal orders. This includes members of the Army Reserve, Navy Reserve, Marine Corps Reserve, Air Force Reserve, and Coast Guard Reserve.

Some SCRA protections extend to dependents including spouses. Eviction protection covers the servicemember's dependents. The Military Spouses Residency Relief Act also allows spouses to maintain the same state of domicile as the servicemember for tax purposes.

You'll need a copy of your military orders showing your active duty start date. Lenders may also request an SCRA certificate from the DMDC website. For interest rate reduction, include account statements showing your current interest rate and balance.

Yes. You can terminate a residential lease if you: (1) enter military service during the lease, (2) receive PCS orders, or (3) receive deployment orders for 90+ days. Provide written notice and a copy of your orders. Termination takes effect 30 days after the next rent payment is due.

Yes, but with specific requirements. You can terminate a vehicle lease if you receive: (1) deployment orders for 180+ days with a military unit, or (2) PCS orders to a location outside the continental United States (OCONUS). Simply receiving PCS orders within CONUS does not qualify for vehicle lease termination.

Submit written notice to your landlord or lessor along with a copy of your military orders. For residential leases, termination is effective 30 days after the next rent payment is due. For vehicle leases, return the vehicle within 15 days of notice and you owe rent/lease payments through the return date.

No. Under SCRA, landlords cannot charge early termination fees, penalties, or require forfeiture of your security deposit for lease termination due to military service. The landlord can only require payment through the effective termination date.

SCRA prohibits foreclosure on property owned by a servicemember during military service and for 12 months after service ends, without a court order. The protection applies to mortgages and trust deeds for real property. Courts may stay proceedings and adjust the mortgage obligation.

Foreclosure protection begins when you enter active duty and continues for 12 months after your active duty service ends. This extended protection period was increased from 90 days by the Housing and Economic Recovery Act of 2008.

Yes. SCRA provides protection against sale, foreclosure, or seizure of property for nonpayment of taxes, including property taxes. A court must review the case and may stay the sale or adjust the payment obligation.

Yes. Under SCRA amendments and FCC regulations, you can terminate cell phone and wireless service contracts without early termination fees when you receive military orders for relocation or deployment for 90+ days to an area where the service is unavailable.

While federal SCRA doesn't specifically address gym contracts, many states have laws allowing servicemembers to cancel fitness memberships when receiving deployment or relocation orders. Additionally, most major gym chains have military cancellation policies.

SCRA and related laws allow cancellation of: residential and vehicle leases, cell phone contracts, and (in many states) gym memberships, internet service, cable TV, and security monitoring contracts. Requirements vary, so check specific state laws.

Yes. Under SCRA, you can request a stay (delay) of civil court proceedings for at least 90 days if your military duties materially affect your ability to appear. The court must grant the stay if you provide a letter from your commander and a statement of when you can appear.

If a default judgment was entered against you during military service, you may apply to reopen the judgment within 60 days after your service ends. You must show that your military service materially affected your ability to defend the case and that you have a meritorious defense.

SCRA provides a private right of action allowing you to sue for violations. You may recover actual damages, punitive damages, and attorney's fees. You can also file complaints with the CFPB and DOJ, which have authority to bring enforcement actions.