The SCRA requires creditors to limit interest rates on applicable debt to 6% while the service member is on active duty. These protections apply to many types of debt, but the most common include credit card debt, truck or car loans, and mortgages. Debt in the form of a mortgage or deed of trust will be limited for an additional year after active duty has ended.
Another advantage of these protections is that interest in excess of 6% is forgiven. When interest is forgiven, the creditor is required to reduce the service member’s payment amounts by the amount of the interest forgiven. In some cases, this can be a big benefit to service members as it reduces minimum monthly payments on debt.
There are requirements that must be met for the 6% interest rate limit to apply.
- The service member must have incurred the debt prior to entering military service; and
- The service member must provide a creditor written notice and a copy of either his or her military orders or some other “appropriate indicator of military service,” such as a certified letter from a commanding officer. This notice must be given to the creditor no later than 180 days after military service has ended.
Most major creditors, like credit card institutions and national banks, routinely monitor the Defense Manpower Data Center so that they are aware of changes to the military status of their customers. However, the safe approach is for a service member to provide proper notice to each of his or her creditors.
What if my creditor doesn’t comply?
When creditors don’t properly comply with the SCRA, you can take action. Often times, an experienced military justice attorney can have the issue resolved without going to court. Creditors who don’t comply with the SCRA risk paying for your losses and damages resulting from their non-compliance, paying your attorney’s fees, paying fines. Creditors can even being prosecuted for a federal misdemeanor.
If you or someone you know needs help navigating the Servicemembers Civil Relief Act, please contact Military Justice Attorneys today to speak with an experienced military justice lawyer.
What Our Clients Say
-
"He is an articulate pitbull in the courtroom."
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 -
"It Was Like a Scene From a Movie"
The results I received from the board was the best possible outcome in my favor and saved my career and my family’s future.
- Master Sergeant, USAF -
"I trusted him with my career on the line, and he was outstanding."
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 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 -
"Mr. Hodge was relentless in his defense of me"
Mr. Hodge was relentless in his defense. . . and absolved me of any wrongdoing under the UCMJ.
- Corporal, USMC
Our Battles Won
Results Matter. When your career, reputation, and freedom are on the line, you need an experienced law firm in your corner. With more than 75 years of combined legal experience, the attorneys at MJA know how to fight and win. Our results speak for themselves.
-
"NOT GUILTY"
Fort Cavazos, Texas. Army Staff Sergeant Acquitted of Murder at General Court-Martial After Deadly Shooting Incident in Texas.
-
"NOT GUILTY" "NOT GUILTY"
Quantico, Virginia. Marine Corporal (E-4) Acquitted at Court-Martial of Wrongful Drug Use After Positive Urinalysis.
-
"NO BASIS"
Joint Base Pearl Harbor-Hickman, Hawaii. Administrative Discharge Board Finds “No Basis” for Alleged Senior Leader Misconduct.
-
"NOT GUILTY" Fort Cavazos, Texas
Fort Hood, Texas. Army Private Second Class (E-2) Acquitted of Rape and Sexual Assault Charges After Week-Long Trial.
-
"NOT GUILTY" Parris Island, South Carolina
Parris Island, South Carolina. Marine Staff Sergeant (E-6) Acquitted at Court-Martial of Hazing, Blood Striping, and Pinning.
-
"NOT GUILTY" "NOT GUILTY"
Kings Bay, Georgia. Navy Master-at-Arms Found Not Guilty of Unholstering Firearm and Pointing it at Another Sailor.
-
"NOT GUILTY" "NOT GUILTY"
Spangdahlem Air Base, Germany. Senior Airman (E-4) Accused of Rape and Abusive Sexual Contact Acquitted by Military Judge.