SCRA Retroactive Refunds
If you've been paying more than 6% interest on pre-service debts during active duty, you're owed money. Here's how to get it back.
What Are Retroactive Refunds?
Under the SCRA, the 6% interest rate cap is applied retroactively to your military service start date—even if you didn't request the benefit until later. This means lenders must recalculate all interest charges and refund any excess you've paid.
Many service members don't learn about SCRA benefits until years into their service. The law protects you by requiring lenders to refund all excess interest from day one, regardless of when you file your claim.
How Much Could You Get Back?
Your refund depends on three factors: the balance on your pre-service debts, the original interest rate, and how long you've been on active duty.
Auto Loan: $25,000 at 8.5% APR
This calculation applies to each qualifying account. Credit cards, mortgages, student loans, personal loans—every pre-service debt at rates above 6% is eligible. Total refunds of $5,000-$15,000+ are common.
How to Claim Your Refund
List every account opened before your service date with an interest rate above 6%. Include credit cards, auto loans, mortgages, student loans, and personal loans.
Get official documentation showing your active duty start date. If you don't have copies, use the DMDC SCRA website to generate a verification letter.
Send each lender a letter requesting SCRA benefits AND retroactive refunds. Include copies of your orders. Be explicit about wanting past interest refunded.
Lenders have 30 days to respond. Verify they've reduced your rate AND calculated your refund correctly. Check the math—some lenders underpay.
Refunds are typically issued as a check, direct deposit, or credit to your account. Processing times vary from 2 weeks to 90 days depending on the lender.
Is There a Time Limit?
No federal deadline exists for claiming SCRA retroactive refunds. However, state statutes of limitations may apply in some cases. The practical rule: file as soon as possible.
Some lenders claim they can only look back a certain number of years for records. This is often a stalling tactic. Escalate to their legal department or file a complaint with the CFPB if they refuse to calculate your full refund.
Can I Claim After Leaving the Military?
Yes. If you've separated from active duty, you can still claim retroactive refunds for interest overpaid during your service period. Many veterans discover SCRA years after leaving the military and successfully recover thousands.
Gather your DD-214 (discharge papers) showing your service dates and follow the same process. Lenders must honor the law regardless of your current status.
Common Issues
Lender says they already applied SCRA
Verify by reviewing statements. Some lenders only apply the rate reduction going forward without issuing retroactive refunds. Request a detailed breakdown of their calculations.
Refund amount seems too low
Do your own calculation and compare. Common errors include using the wrong start date, calculating simple interest instead of compound, or missing certain fee charges that should also be refunded.
Lender claims the debt doesn't qualify
If the debt was incurred before your service date and carried an interest rate above 6%, it qualifies. Provide account opening documentation if needed. Escalate to their compliance department.
Get Your Money Back
SCRA Saver calculates your exact refund amount and handles the claims process with every lender.
Calculate Your Refund