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SCRA Fundamentals

What is the SCRA?

The Servicemembers Civil Relief Act is a powerful federal law that provides 21+ financial and legal protections to active duty military members—but most service members don't know they exist.

Servicemembers Civil Relief Act (SCRA)

A federal law (50 U.S.C. §§ 3901-4043) that provides financial and legal protections to active duty military service members, allowing them to focus on their mission without worrying about civil legal matters back home.

SCRA Overview

The Servicemembers Civil Relief Act, commonly known as the SCRA, is one of the most valuable yet underutilized benefits available to military service members. Enacted by Congress to ensure that those serving our country can focus on their duties without being disadvantaged by their military service.

The law recognizes a simple truth: when you're deployed or stationed away from home, you can't easily manage your financial affairs, appear in court, or negotiate with creditors. The SCRA levels the playing field by providing specific, enforceable protections.

The Average Service Member Saves $4,200/Year
Most military members qualify for multiple SCRA protections but never claim them. The 6% interest rate cap alone can save thousands annually on mortgages, auto loans, and credit cards.

History of the SCRA

The SCRA has roots going back over 100 years, evolving to meet the needs of service members in each era:

1918
The Soldiers' and Sailors' Civil Relief Act was enacted during World War I to protect service members from civil liabilities while serving.
1940
Updated and strengthened for World War II, establishing the 6% interest rate cap that still exists today.
2003
Renamed the Servicemembers Civil Relief Act (SCRA) and significantly modernized with expanded protections for the post-9/11 era.
2014-Present
Ongoing amendments have expanded protections, including the Military Lending Act (MLA) which provides additional protections for new debt.

What Does the SCRA Protect?

The SCRA provides over 21 distinct protections across financial, legal, housing, and contractual matters. Here are the major categories:

6% Interest Rate Cap

Caps interest rates at 6% on all pre-service debt including credit cards, auto loans, mortgages, and student loans.

Lease Termination

Terminate residential and vehicle leases without penalty when receiving PCS orders or deployment of 90+ days.

Eviction Protection

Landlords must obtain a court order to evict, and courts can stay eviction for up to 3 months.

Foreclosure Protection

Prevents foreclosure without a court order during service and for 12 months after.

Court Stay

Postpone civil court proceedings for at least 90 days if military duty prevents appearance.

Contract Termination

Cancel cell phone contracts, gym memberships, and other service contracts without early termination fees.

View all 21+ SCRA protections →

Who Qualifies for SCRA?

The SCRA covers all service members on active duty status:

  • Active Duty: Army, Navy, Air Force, Marine Corps, Space Force, Coast Guard
  • National Guard: When activated under federal orders (Title 10)
  • Reserves: When called to active duty under federal orders
  • Commissioned Corps: Public Health Service and NOAA officers
Timing Matters: For most SCRA protections, the debt or obligation must have been incurred before you entered active duty. Debts taken on during service are covered by the Military Lending Act (MLA) instead.

Check your full eligibility requirements →

How Does SCRA Work?

SCRA benefits are not automatic. To receive protection, you must:

  1. Identify your protections — Determine which SCRA benefits apply to your situation
  2. Submit written requests — Send formal requests to each creditor, landlord, or entity
  3. Provide military orders — Include a copy of your orders showing active duty status
  4. Follow up — Track responses and escalate to regulators if creditors don't comply

Each creditor requires a separate request. If you have a mortgage, two credit cards, an auto loan, and a gym membership, that's five separate letters with documentation. Many service members find this process overwhelming—which is why most SCRA benefits go unclaimed.

Common SCRA Myths

Myth: SCRA benefits are automatic

Reality: You must formally request each protection in writing. Creditors won't apply the 6% cap or other benefits unless you ask.

Myth: The 6% cap only applies to interest going forward

Reality: If you've been on active duty and paying more than 6% interest, you're entitled to retroactive refunds of the excess interest paid.

Myth: SCRA only helps with debt

Reality: SCRA covers lease terminations, court proceedings, insurance, taxes, and much more. It's comprehensive civil relief, not just financial.

Myth: Lenders always comply voluntarily

Reality: While major banks have improved compliance, many creditors require multiple follow-ups, proper documentation, and sometimes regulatory complaints to honor SCRA rights.

Frequently Asked Questions

SCRA stands for Servicemembers Civil Relief Act. It's codified at 50 U.S.C. §§ 3901-4043. Before 2003, it was called the Soldiers' and Sailors' Civil Relief Act (SSCRA).
Most SCRA protections are active during your entire period of military service. Some protections, like foreclosure protection, extend for 12 months after service ends. The 6% interest rate cap applies from the date of your written request through the end of your active duty period.
Creditors cannot legally deny valid SCRA requests. If they do, they're violating federal law and can face significant penalties. You can file complaints with the Consumer Financial Protection Bureau (CFPB), Department of Justice, and your state's Attorney General.
The SCRA covers debts incurred before entering active duty. The Military Lending Act (MLA) covers certain types of new credit taken during active duty, capping rates at 36% APR and providing other protections. They work together to protect service members' finances.
No, you don't need a lawyer for most SCRA claims. You need to send proper written requests with copies of your military orders to each creditor. However, if a creditor refuses to comply, you may want legal assistance—JAG offices can help, or services like SCRA Saver handle the entire process for you.

Claim Your SCRA Benefits

The average service member qualifies for thousands in annual savings but never claims their benefits because the process is time-consuming and confusing. SCRA Saver handles everything for you—we generate the letters, submit them to your creditors, track responses, and escalate non-compliance.

Calculate Your Savings