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Give Military Justice Attorneys a phone call at (843) 755-6535 Contact Us

How the SCRA Interest Rate Cap Works

The SCRA requires creditors to limit interest rates on applicable debt to 6% while a service member is on active duty. These protections apply to various types of debt, including credit card debt, auto loans, and mortgages. Debt in the form of a mortgage or deed of trust may remain subject to the interest rate cap for an additional year after active duty has ended.

One important advantage of these protections is that interest exceeding 6% is forgiven, not deferred. When interest is forgiven, the creditor must reduce the service member’s payment amounts by the amount of the excess interest. In many cases, this results in significantly lower monthly payments and meaningful financial relief during military service.

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Eligibility Requirements for the 6% Interest Rate Cap

Certain requirements must be met for the SCRA’s 6% interest rate limit to apply. The service member must have incurred the debt before entering military service. Additionally, the service member must provide the creditor with written notice and a copy of military orders or another suitable indication of military service, such as a certified letter from a commanding officer.

This notice must be provided no later than 180 days after the end of military service. While many major creditors, including national banks and credit card issuers, monitor the Defense Manpower Data Center to track changes in military status, the safest approach is for service members to provide direct notice to each creditor to ensure compliance with their requirements.

Case Results We’ve been in the fight & know how to win

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NO GOMOR ISSUED

Fort Cavazos, Texas. Army Officer Rebuts Allegations of Online Social Media Misconduct; No GOMOR Issued.

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GOMOR LOCALLY FILED

Shaw Air Force Base, South Carolina. Army Major (O-4) reprimanded for extramarital sexual conduct, GOMOR locally filed.

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NO ADVERSE ACTION

Fort Stewart, Georgia. An Army Sergeant (E-5) was flagged for allegedly violating a restriction of movement (ROM) order following a suspected case of COVID-19.

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GOMOR REMOVED

Fort Stewart, Georgia. GOMOR removed for Army Ranger arrested for DUI less safe after failing to submit to a field sobriety test.

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GOMOR LOCALLY FILED

Fort Knox, Kentucky. Army Major (O-4) facing an investigation and possible removal from the Army contacted MJA to help him respond appropriately.

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MARINE SNCO PROMOTED

Camp Lejeune, North Carolina. Marine Staff Sergeant (E-6) refused NJP, avoids court-martial and earns promotion.

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PROMOTED AFTER GOMOR

United States Army Japan. An Army First Lieutenant (O-2) received a permanently filed GOMOR for allegedly being drunk and disorderly in violation of USF Japan liberty policy.

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GOMOR WITHDRAWN AND DESTROYED

Army Reserve Support Command. Army Sergeant First Class (E-7) reprimanded for alleged aggravated sexual contact.

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GOMOR LOCALLY FILED

1st Theater Sustainment Command, Middle East. Army Major (O-4) reprimanded for allegations of extramarital sexual conduct.

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GOMOR TRANSFERRED

Department of the Army Suitability and Evaluation Board (DASEB). Army Captain (O-3) reprimanded for drunk and disorderly.

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What Happens If a Creditor Violates the SCRA?

When creditors fail to comply with the SCRA, service members have the right to take action. In many cases, an experienced military justice attorney can resolve the issue without the need for litigation. Creditors who violate the SCRA may be required to compensate service members for losses and damages, pay attorney’s fees, and pay fines. In some circumstances, noncompliance may also result in prosecution for a federal misdemeanor.

If you or someone you know needs assistance enforcing rights under the Servicemembers Civil Relief Act, please contact Military Justice Attorneys to speak with an experienced military justice lawyer.

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Client Testimonials Their Words. Their Cases. Their Results.

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"The Government Came to Bury Me, Josh Hill Buried Their Case Instead"

If you’re reading this review,...

"If you’re reading this review, there’s a fair chance you’re in trouble with the military. The answer is YES—hire Josh Hill. He is worth every penny and more. Don’t gamble with your VA benefits, your military pension, or your freedom. You only get one shot at defending your future. Trust me, this is the guy you want in your corner. When I first hired Josh Hill as my civilian military lawyer, I was staring down a mountain: 28 specifications across 6 charges in a military court-martial. The government basically made a giant mud ball, threw it at the wall, and waited to see what would stick. The stakes couldn’t have been higher—my freedom, my career, my reputation, and my benefits were all on the line. But from day one, Josh brought unmatched experience, surgical strategy, and a level of confidence that gave me hope when I needed it most. Josh Hill is a master of his craft. He navigated the UCMJ like a seasoned warrior—dissecting every allegation, exposing every weakness in the government’s case, and challenging every false assumption thrown my way. His preparation was meticulous, his presence in court was commanding, and his cross-examinations were absolutely relentless. He left no stone unturned and no argument unanswered. Because of Josh’s leadership, we went from what felt like an impossible situation to walking out of that courtroom not guilty on all charges. That wasn’t just a win—it was a total and complete vindication. And it’s 100% because of Josh Hill’s commitment, brilliance, and refusal to let the government steamroll me. Josh Hill didn’t just defend me—he saved my life. I will forever be in his debt for the sacrifices he made and the time he dedicated to my case. One last note: When he calls—ANSWER IT. Drop what you're doing, it can wait. That phone call might be the one thing that changes your future. If you want to hear my story firsthand, Josh has my permission to give you my contact info. I’ll gladly tell you exactly how he absolutely destroyed the government’s case, so I can continue with my life."
-STAFF SERGEANT, USMC

"He is an articulate pitbull in the courtroom."

My career, my life, my futu...

I know Mr Healy quite well. He represented me in a case where the odds were stacked against me. This was the most difficult time of my life considering some other circumstances that were added on. However, he fought for me tooth and nail even though his caseload was very high at the time. It seemed he devoted every ounce of effort to find me justice and in the end, because of his efforts, I was fully acquitted of several charges.

I will never forget that feeling for as long as I live. Upon the announcement of the verdict I nearly collapsed. My career, my life, my future was completely in his hands and he took it as seriously as I did. He is an articulate pitbull in the courtroom. I highly recommend his services if you expect to have any chance of seeing the justice you truly deserve.

-Corporal, USMC

"Mr. Hodge was relentless in his defense of me"

Mr. Hodge was relentless in hi...

Mr. Hodge was relentless in his defense of me . . . and absolved me of any wrongdoing under the UCMJ.
-Corporal, USMC

"His dedication to me as a client was unprecedented."

Josh is a hard nosed and dedic...

Josh is a hard nosed and dedicated attorney that will stand by you every step of the way in your defense. His dedication to me as a client was unprecedented.
-Staff Sergeant, USA

"I would hire them again in a heartbeat."

Gerry and Josh are absolute pr...

Gerry and Josh are absolute professional monsters in the courtroom. I would hire them again in a heartbeat and wouldn’t want anyone else in my corner!
-Private First Class, USA

"I trusted him with my career on the line, and he was outstanding."

Mr. Hill tore apart the govern...

Mr. Hill tore apart the government's theory piece by piece . . . I trusted him with my career on the line, and he was outstanding.
-Petty Officer Third Class, USN

"I would not want my fate in anyone else’s hands."

Gerry Healy is an outstandi...

Gerry Healy is an outstanding attorney. In the courtroom he is confident, knowledgeable, and aggressive. I would not want my fate in anyone else’s hands.
-Airman First Class, USAF
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