SCRA — 6% Interest Rate Cap
The Servicemembers Civil Relief Act caps interest rates at 6% on pre-service debts (mortgage, car loans, credit cards) while on active duty.
Who qualifies: Active duty, National Guard.
The Servicemembers Civil Relief Act (SCRA) provides critical financial protections when entering active duty:
6% Interest Rate Cap:
• All pre-service debts (loans, credit cards, mortgages) must be reduced to 6% APR while on active duty
• Applies retroactively from the date active duty begins
• Creditors must forgive – not defer – excess interest above 6%
• Applies to mortgages, car loans, student loans, credit cards, and more
Additional SCRA Protections:
• Protection from eviction (rents up to ~$4,369/month)
• Lease termination rights (30—90 days notice sufficient)
• Court proceedings stay (delays while deployed)
• No default judgments in civil proceedings
• Protection from repossession without court order
• Life insurance protection
• Cell phone contract termination when deployed
To request: send written notice + copy of orders to each creditor.