Your SCRA Rights

The short version

The Servicemembers Civil Relief Act (SCRA) is a federal law that protects you financially while you serve. Its headline benefits: a 6% interest-rate cap on debts you took on before service, the ability to break a lease without penalty when you get orders, and protection from foreclosure and eviction without a court order.

These protections are not automatic for every benefit, you often have to invoke them in writing, with a copy of your orders.

The 6% rate cap

If you had a loan or credit card before you entered active duty, the SCRA caps the interest at 6% per year for the period of your service, and any interest above 6% is forgiven, not just deferred. It covers credit cards, car loans, mortgages, and more. You request it in writing and include a copy of your orders, and the lender applies it back to the date you entered active duty.

What the 6% cap covers

• Debts taken on before active duty.
• Credit cards, auto loans, mortgages, and most fees.
• Excess interest is forgiven, not deferred.

What it does not cover

• Debts you take on after entering service.
• Federal student loans have their own rules (some qualify).

The 6% cap is not automatic. Send the lender a written request with your orders, and it applies back to your active-duty start date.

Source: CFPB; DOJ Servicemembers and Veterans Initiative

Break a lease without penalty

Get PCS orders, a deployment of 90 days or more, or separation, and you can terminate a residential lease, and most auto leases, without an early-termination penalty. You give written notice and a copy of your orders. The same protection can extend to dependents who are joint lessees.

Protection from foreclosure and eviction

If you took out a mortgage before active duty, a lender generally cannot foreclose without a court order while you serve and for a period after. Courts can also pause or reduce judgments, evictions, and other civil actions when service affects your ability to respond.

How to use your SCRA rights

• Put requests in writing and attach your orders.
• Ask your installation legal office (JAG) for help, it is free.
• Keep copies of every request and response.

SCRA pairs with the Military Lending Act: SCRA covers debts from before service, the MLA caps new consumer loans at a 36% Military APR.

Source: CFPB

Do this now

1. List debts you had before active duty and request the 6% cap in writing.
2. Use the lease-termination right when you get qualifying orders.
3. Talk to JAG before a foreclosure, eviction, or court date.
4. Keep orders and written requests on file.

FAQ

Is the 6% cap automatic?

No. You must request it in writing with a copy of your orders. Once applied, it reaches back to your active-duty start date.

Can I break my lease when I PCS?

Yes. Qualifying orders (PCS, 90+ day deployment, or separation) let you terminate a residential lease without penalty after written notice.

What is the difference between SCRA and the MLA?

SCRA protects debts from before service (6% cap, lease and foreclosure protections). The Military Lending Act caps new consumer credit at a 36% Military APR.

Where do I get help?

Your installation legal assistance (JAG) office helps for free, and the CFPB and DOJ handle complaints.

Sources & links

• CFPB, Servicemembers Civil Relief Act: consumerfinance.gov
• DOJ, Know Your Rights: A Guide to the SCRA: justice.gov
• Military OneSource, SCRA: militaryonesource.mil